The Norwegian Competition Authority (Konkurransetilsynet) has written to Telia Norway and mobile operator Phonero, regarding their potential merger, according to an article on newspaper Dagens Naeringsliv’s website. Telia and Phonero would have 37.1 percent of the mobile market, which could lead to higher prices and less competition on the end-user market, said the authority. Giants Telia and Telenor Norway would control more than 90 percent of the mobile market between them, it added.
Dagens Naeringsliv cited departmental director Gunnar Nese as telling the two parties that Telia’s purchase of Phonero could reduce competition to the detriment of mobile customers. The authority will make a decision by 20 February on whether to conclude the matter or send them another warning that it might halt the deal.
Phonero has more than 200,000 mobile customers, most of them in the business market, said Dagens Naeringsliv. Telia would have more than 26 percent of the enterprise market if it went ahead and bought Phonero, it added.
Telia Norway said it is normal with transactions of this size and character for the competition authority to ask for more time. Spokesman Henning Lunde said it is important to emphasise that the letter is not a warning that the authority could block the merger, adding that Telia had said it expected the deal to close in the first quarter of 2017. He said it would strengthen its position as a challenger to Telenor, which dominates the corporate sector with a 67 percent share.
