Telenor Denmark extends network services deal with Ericsson

Telenor Denmark and Ericsson said they have deepened their partnership by signing an extended field services contract, which replaces the previous three-year agreement from 2011.

As part of the agreement, Ericsson said it will perform preventive and corrective maintenance activities in the operator's mobile and fixed networks in Denmark. The Sweden-based vendor added that the contract ensures continuous improvement of network quality and operational efficiency.

"In a very competitive, connected world, a network with superior performance is one of the key differentiators and a strategic asset for operators," commented Jørgen Alsing, country manager for Ericsson Denmark.

The agreement also extends to the shared mobile network of Telenor Denmark and Telia Denmark. The two operators entered into the agreement on network sharing in June 2011 with the aim of building a common infrastructure for 2G, 3G and 4G services. Ericsson noted that the shared network is the largest in Denmark and serves 3.5 million subscribers.

Since then, Telenor and TeliaSonera have unveiled plans to merge their Danish operations, saying in December 2014 that the ongoing pressure on profitability in the market means an "independent and full-function joint venture is the strategically preferred route to capture synergies and create value."

Jefferies also noted at the time that Telenor and TeliaSonera have "long grappled with their sub-scale positions in the Danish market" and their lack of ability "to break TDC's dominance".

However, the move faces close regulatory scrutiny due to a potential marginalisation of Three Denmark.

The EC's new competition commissioner, Margrethe Vestager, recently hinted that future mergers and acquisitions that reduce the number of network operators in individual member states could face tougher scrutiny. Initial evidence from markets where consolidation has been allowed, such as in Austria, shows consumer prices are rising.

For more:
- see this Ericsson release

Related Articles:
EC's Vestager hints at closer scrutiny of future operator consolidation
TeliaSonera picks Ericsson to manage field operations in Sweden
M&A helps reshape the European mobile landscape
Telenor Denmark plans VoLTE launch in 2015
EC tipped to closely scrutinise Telenor/TeliaSonera Danish joint venture

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