Telia and Ice Forge Network Alliance to Challenge Telenor's Norwegian Dominance

STOCKHOLM/OSLO, Feb 2 (Reuters) – In a significant reshaping of Norway's telecom landscape, Swedish telecommunications group Telia and Norwegian utility Lyse, the owner of mobile operator Ice, announced on Monday a plan to consolidate their mobile radio access networks (RAN) into a jointly held company. The move is a direct bid to share the heavy financial burden of network rollout and mount a more substantial challenge to the domestic supremacy of Telenor.

The Norwegian market has long been defined by Telenor's commanding lead, with Telia Norway and Ice trailing as the second and third players, respectively. This partnership, focusing on the physical towers and antennas that connect devices to the network, is designed to create a more robust and extensive infrastructure base for both companies. Crucially, Telia Norway and Ice will retain ownership and independent operation of their core networks and customer-facing services, ensuring they remain direct competitors in the retail market.

"This alliance provides the critical scale we both need to construct a true nationwide network—a feat that is prohibitively expensive for either of us to achieve alone," Telia CEO Patrik Hofbauer told Reuters. He emphasized that the consolidation is expected to yield "significant cost savings and clear financial benefits," which will in turn "provide the necessary firepower to invest in and build a future-proof, high-capacity digital network for our customers."

The companies anticipate the combined network entity will become operational by the second quarter of this year. Analysts view the deal as a pragmatic response to the intense capital demands of 5G deployment and ongoing network upgrades, a trend increasingly seen across Europe as operators seek efficiencies without resorting to full-scale mergers.

Industry Voices: A Mix of Pragmatism and Skepticism

Kari Johansen, Telecom Analyst at Arctic Securities: "This is a logical, asset-light cooperation model. Sharing the 'plumbing' reduces duplicated investment, freeing capital for service innovation and competition on price and features. It's a smart way for the challengers to stay in the game against Telenor's vast resources."

Lars Mikkelsen, Small Business Owner in Bergen: "As a customer, I welcome anything that might lead to better coverage in rural areas or lower bills. If this joint network helps Ice and Telia invest more in remote regions where service can be spotty, that's a net positive for everyone outside the major cities."

Elin Sørdal, Consumer Advocate with "Digital Rights Norway": "Let's not dress this up as purely pro-consumer. This is a cost-cutting exercise that reduces physical network competition. While they promise separate 'cores,' consolidating access infrastructure is the first step toward a de facto duopoly. We must watch closely to ensure this doesn't lead to coordinated price hikes or slowed innovation in the long run."

Henrik Falk, CTO of a Oslo-based tech startup: "For businesses reliant on stable, high-speed mobile data, a stronger combined network from Telia and Ice could finally provide a viable alternative to Telenor. Competition on network quality, not just price, is what truly drives the market forward."

(Reporting by Supantha Mukherjee in Stockholm; Editing by Anna Ringstrom)