Norway’s second largest broadband supplier, NextGenTel, has bought the broadband and VOIP business of Tele2 Norway.
The deal will strengthen NextGenTel’s position in the Norwegian market by adding 97,000 broadband subscriptions – of these 23,000 are VOIP subscriptions.
It also brings with it technical assets and key supplier contracts.
A subsidiary of TeliaSonera, NextGenTel is to pay NOK 100 million (approx. USD $15.5 million) for the business, cash and debt free.
The acquisition requires the approval of the Norwegian Competition Authority.
But once completed, NextGenTel’s market share on the ADSL market will increase from 15 per cent to approximately 22 per cent.
Håkan Dahlström, president of broadband services at TeliaSonera, said that both the Tele2 national network and the customers’ equipment will be easily integrated with NextGenTel’s network.
He said Tele2’s broadband and VOIP business is an attractive asset that will strengthen NextGenTel’s position in the Norwegian market.
"The increased customer base will also result in improved capacity utilization of the network," he said.