Norway-based Telenor and Sweden's TeliaSonera have formed a joint venture to consolidate their Danish mobile operations where the parties will own 50 percent each, gearing toward stronger revenues and profitability. The new entity will have a combined mobile subscriber base of around 3.5 million, market share of approximately 40% and an expected revenue of more than DKK 9 billion. A new CEO will be appointed to head the new company.
The consolidation of both the operators' operations in the areas of distribution, sales & marketing and call centers, general & administrative cost and network and IT could save DKK 800 million, with full effect from 2019. Integration costs are expected at around DKK 0.8 billion during 2015-2017. Both companies are also confident that the consolidation will benefit customers in Denmark, providing a larger distribution network as well as improved network connectivity and performance.