The energy distributor and telecom operator is building on its recent Telia Danmark acquisition as it seeks to boost bundling
Norlys announced it intends to acquire energy and water utility EWII’s fibre network, which includes approximately 135,000 addresses. Norlys is wasting no time in its efforts to become a national converged telecoms and energy provider: in April, Norlys acquired Telia Danmark and entered the mobile market.
EWII’s network is in the country’s Triangle Region which encompasses seven municipalities on the Jutland peninsula and the island of Funen, namely Billund, Fredericia, Haderslev, Kolding, Middelfart, Vejen and Vejle.
The transaction is contingent upon approval from Norlys’ board of representatives and the Danish competition authorities. As a result of the sale, EWII concludes a “significant chapter” in its history and now shifts focus to the development of new infrastructure.
Next logical step
“We have now deployed fibre across our entire ownership geography, thus completing our mission in fibre. The divestment is, therefore, a logical next step. Being a customer-owned company, Norlys share our values, and this makes Norlys a natural new owner,” said EWII Group CEO Lars Bonderup Bjørn.
“It was particularly important for me to ensure a bright future for the employees at EWII Fibernet, and I am pleased that they will continue securely under the new ownership,” he added. Upon completion of the transaction, Norlys will take over 48 employees currently working at EWII Fibernet.
“It has been nearly 20 years since we first rolled out part of the fibre network. In 2019, we made a significant decision to consider access to the fibre network as a mandatory service, and therefore, to deploy fibre to everyone in the supply area,” said Bjørn. “This effort is now nearly complete, and I am proud that EWII, in line with our purpose statement, stands behind significant value creation for the Triangle Region.”
Hitting one million
With the acquisition of EWII’s fibre network, Norlys will now cover more than one million addresses with fibre. “It’s essential that we have the necessary scale to support the ongoing development of fibre infrastructure in Denmark, said Norlys Group CEO Niels Duedahl.
“That was one of the reasons why we brought in two external investors two years ago, who contribute with capital and valuable insights from other European markets. The purchase of EWII’s fibre network is part of a long-term growth plan and a perfect match for our existing business both commercially and geographically,” he added.
The EWII Group was the first to open its fibre network to all internet service providers offering customers more choices. Initially, the agreement will not affect EWII’s current fibre customers, and Norlys will ensure that customers in the Triangle Region continue to have “extensive options”.
“We believe our fibre network should be open to all service providers, as it provides customers with maximum choice and the most competitive offers,” said Norlys’s fibre business chief executive Carsten Bryder Thejls. “Therefore, customers in the Triangle Region will naturally also be able to choose from the ten internet and TV providers active on Norlys’s fibre network.”
The transaction is expected to be finalised by the end of 2024.
Better internet in Broadband Pool
Norlys said Denmark’s Broadband Pool has opened for applications for better internet, and this year even more people can get a share of the money. The Broadband Pool (Bredbåndspuljen) is a government initiative in Denmark aimed at improving broadband internet access in areas with poor or no broadband coverage. The pool provides funding to support the deployment of high-speed internet infrastructure, especially in rural and remote regions where market conditions alone may not incentivise private investments.
This year, the criteria for applying for the pool have changed, so that even more people can be considered for support. Therefore, applicants must only have access to internet speeds of less than 100Mbps download via fixed broadband and less than 600Mbps via mobile broadband to be eligible for a grant. Therefore, as many as 33,000 addresses can apply for the pool this year. This is about 6,000 more than last year.