Telia and Lyse Form Joint Network Venture

• Telia and Lyse have agreed to merge their Norwegian mobile radio access networks into a jointly owned company.
• Both operators will continue to run independent core networks while sharing infrastructure to reduce costs.
• The partnership aims to strengthen competition against market leader Telenor and accelerate nationwide network development.

A Strategic Move in a Telenor‑Dominated Market

Telia and Lyse, the owner of mobile operator Ice, announced a plan to combine their Norwegian mobile radio access networks into a jointly held entity. The move comes as Telenor continues to dominate the Norwegian telecom landscape, leaving Telia Norway and Ice as the second‑ and third‑largest players. By pooling their radio access infrastructure, the two companies aim to improve coverage and reduce operational costs. Both firms emphasized that they will remain independent competitors, maintaining separate core networks.

The agreement reflects a broader trend in European telecom markets, where operators increasingly share infrastructure to manage rising investment demands. Building and maintaining nationwide mobile networks has become significantly more expensive due to 5G deployment and growing data usage. Telia CEO Patrik Hofbauer noted that neither company could realistically build a full national network alone. The partnership therefore offers a practical path toward broader coverage and improved service quality.

Telia expects the collaboration to generate substantial cost savings. Shared infrastructure reduces duplication and allows both companies to allocate resources more efficiently. Hofbauer said the arrangement will give the partners greater capacity to invest in digital infrastructure. The companies believe the joint network will enhance long‑term competitiveness in Norway’s telecom sector.

Operational Independence Maintained

Telia Norway and Ice stressed that the partnership does not affect their competitive positions. Each operator will continue to run its own core network, which handles essential functions such as authentication, routing and service management. This separation ensures that both companies can maintain distinct service offerings and customer experiences. The shared radio access network will focus solely on the physical infrastructure used to transmit mobile signals.

Maintaining independent core networks also helps preserve regulatory compliance. Norwegian authorities typically require that operators remain capable of competing fairly, even when sharing infrastructure. The companies emphasized that the agreement aligns with these expectations. Their goal is to balance cost efficiency with market competition.

The partnership is expected to improve network reliability. Shared infrastructure can reduce coverage gaps and enhance performance in rural areas. Both companies see this as a key advantage in a geographically challenging country like Norway. The arrangement may also accelerate the rollout of future technologies.

Implementation Timeline and Expected Benefits

The combined network is scheduled to become operational in the second quarter. Preparations are already underway to integrate existing infrastructure and coordinate deployment plans. Telia and Lyse expect the transition to be smooth, given their previous experience with network modernization. The companies have not disclosed financial details of the joint venture.

Cost savings are expected to be significant. Shared infrastructure reduces capital expenditure and lowers ongoing maintenance costs. These efficiencies can free up funds for further investment in 5G and future network technologies. Hofbauer said the partnership will provide the “firepower” needed to build a strong digital network across Norway.

The move may also influence competitive dynamics in the Norwegian telecom market. Telenor’s dominant position has long shaped pricing and service strategies. A stronger combined network from Telia and Ice could introduce more balanced competition. Consumers may benefit from improved coverage and potentially more competitive offerings.

Network‑sharing agreements have become increasingly common in Europe as operators face rising infrastructure costs. Similar partnerships exist in Sweden, Denmark and the United Kingdom, where companies collaborate on radio access networks while maintaining separate core systems. Analysts note that such arrangements can accelerate 5G deployment without compromising competition. Norway’s challenging terrain makes shared infrastructure particularly attractive for reducing costs and improving nationwide coverage.