Danish fibre operator Norlys, formed in 2019 by the merger of Eniig and SE/Stofa, has announced its intention to expand into the mobile communications market in order to be able to offer a comprehensive service. Its board has authorised it to enter talks with Denmark's largest mobile operators with a view to an alliance or acquisition. It has not yet committed itself to any one particular partner or operating model
Norlys operates a fibre network covering most of Jutland and accessible to approximately 630,000 homes. CEO Niels Duedahl said Norlys has 100 years' experience behind it of establishing and running infrastructure, making an expansion into mobile services a natural step.
The new project will be led by Ulf Lund, previously head of Norlys' Boxer television distribution arm. Lund said that if the mobile project succeeds, Norlys customers will be able to get all their internet services from Norlys and receive the best possible mobile coverage at the same time, even in outlying areas. He added that 5G will be dependent on fibre infrastructure.
Norlys said it has not yet committed itself to any one particular partner or operating model, and is open to listening to potential partners' wishes and needs. Lund said Norlys may operate on a mobile network it does not own, or on one that it partly or fully owns. The aims are to provide value to customers, he said, and to strengthen its position on the market significantly.
Norlys expects to start talks after the summer holidays but will start by setting up a dedicated organisation. Lund said his team will include Lars Bo Jensen, long-standing strategy and M&A director at Norlys.
Norlys owns the N1, Stofa and Boxer brands. Its headquarters are in Silkeborg and it has locations in places including Aarhus, Aalborg, Sonderborg, Esbjerg and Copenhagen. As well as the 630,000 residences with access to its fibre, it also covers an area with more than 1 million addresses with internet access, and 750,000 TV and internet customers. Its annual revenue is around DKK 10 billion, its EBITDA DKK 2 billion, and annual investment approximately DKK 2 billion.
