Telenor’s acquisition of GlobalConnect approved with remedies

The Norwegian Competition Authority has approved Telenor’s acquisition of GlobalConnect’s consumer business, subject to conditions, including divestments of customers and fibre infrastructure in areas where the parties currently compete.

Telenor and GlobalConnect supply broadband services to residential customers and housing associations in many locations where they are close competitors. Following the submission of commitments by Telenor, the Norwegian Competition Authority has today decided to approve the transaction.

– The Authority was concerned that Telenor’s acquisition of GlobalConnect’s residential business could reduce competition and lead to higher broadband prices for consumers. The parties have now offered remedies that address these concerns. The Authority has therefore concluded that the transaction can be approved subject to the commitments proposed by the parties, says Department Director Gjermund Nese.

The proposed commitments include the divestment of overlapping infrastructure together with associated customers in areas where both parties are present with fibre networks. The Authority’s clearance is also conditional on GlobalConnect’s network being opened to competing fibre providers. In addition, GlobalConnect’s customers in areas where the company supplies broadband over Telenor’s fibre network must be transferred to a competing provider.

– During the Authority’s review, the parties have proposed a number of remedies. It has been important for the Authority to ensure that the measures sufficiently safeguard consumers against a reduction in competition. This is particularly relevant for broadband customers in Northern Norway, where the parties compete most closely, says Project Manager Eva Nysæther.

The transaction cannot be implemented until the conditions relating to the divestment of customers and infrastructure have been fulfilled. This includes, among other things, that the Norwegian Competition Authority must assess and approve suitable purchasers.