The Norwegian Competition Authority said it that it is mulling intervening in Telia Company's purchase of Phonero and has notified the two operators that it is considering blocking the deal. It said this notice is not a final decision, and the firms have fifteen days to comment. After this, the authority has another fifteen days, giving an ultimate deadline of 10 April.
The authority said the transaction involves two of the biggest players in the corporate mobile segment, which is highly concentrated. Telia and Telenor Norway are clearly the two largest market participants. In the corporate segment, however, Phonero is a challenger that has had success and gained considerable market share, said the authority’s director general for competition, Lars Sorgard.
Sorgard said the agency fears that the transaction would lead to reduced competition in the enterprise section, thereby increasing costs for Norwegian companies that use mobile services.
Head of department Gjermund Nese said the authority has considered measures proposed by Telia to mitigate the negative effects, but has concluded that they are insufficient. Last week, it said Telia has proposed to give MVNOs access to its national mobile network at set terms for three years.
Telia said it will assess the preliminary notice and respond to the authority shortly. CEO of Telia Norway Abraham Foss said the operator disagrees with the notice and is very surprised by its assessment of the dynamics of the Norwegian enterprise segment. If the authority’s decision stands, then only the dominant operator in the market will benefit, said Foss, referring to Telenor.
