Ice Group said that it has agreed to sell its Swedish business Netett Sverige (Net1) to broadcast network services company Teracom Group for NOK 180 million, in order to concentrate on its Norwegian operations. Ice had already spun off its international joint ventures in Indonesia and the Philippines from September 2018.
Net1 provides wireless broadband and fixed voice services (VoIP) and holds a national licence for 2 x 5 MHz in the 450 MHz band until 31 December 2044. In 2018, Net1 generated service revenues of NOK 130.4 million and reached EBITDA of NOK 9.5 million.
Ice Group CEO Eivind Helgaker said Ice’s biggest growth potential is in Norway, where it is the third-largest mobile network operator, challenging the local duopoly. He said its strategy is to expand its network in Norway with the objective of enhancing its customer proposition, competitiveness and overall profitability. In that context, Ice’s Swedish operation has become a non-strategic asset. The funds released from the sale will be used to boost its Norwegian operation.
Ice said the agreement is expected to be closed "shortly" and Teracom said it should be done in March.
Teracom said the deal means it will continue to offer services with a high level of reliability under state control. CEO of Teracom Asa Sundberg said Net1's network is already largely based on Teracom's infrastructure. Teracom will ensure good coverage and large capacity service to all Net1 customers, be they corporate, public or private ones.
Teracom said it will take over the important role that Net1 has been playing in areas with poor coverage, such as sparsely populated places and maritime customers. Teracom will not deal with private customers directly, but plans instead to sign cooperation agreements with telecom operators.
