Telenor Enters FTTH Space by Buying Muni Broadband Systems

OSLO - Norwegian incumbent Telenor purchased two FTTP networks for $54 million from Agder Energi, a power company owned by the state and 31 municipalities. One of the networks, LOS Bynett, serves the corporate market and public sector, and the other, Bynett Privat, serves households.

Telenor Norway is a major player in the Norwegian broadband market, but today it supplies services mainly via DSL and coax. The company has said it wants to invest in FTTH, but instead of starting from the ground up, it is purchasing two going concerns - and keeping their 23 employees, whom it regards as valuable resources.

LOS Bynett and Bynett Privat have 9,600 private customers and approximately 900 corporate customers. The corporate customer base accounted for almost half of the companies' $16 million in revenue for 2010.

Telenor plans to expand these enterprises and, eventually, to consider integrating them with its existing operations. "We have great faith in the region comprising Agder and Vestfold counties, and Telenor has already established a regional office in Kristiansand and a security centre in Arendal. The strong local business community, population growth and strong purchasing power make this an attractive region," says Ragnar Kårhus, CEO of Telenor Norway.