The two have signed an agreement for a 50/50 share in the joint venture, which it is hoped will cut costs and improve profitability in the Danish market.
“We are making a necessary and natural move by forming a joint venture with Telenor, building on the network partnership we already have with them,” said Robert Andersson, EVP and head of region Europe at TeliaSonera.
“By joining forces we can secure investments in Denmark, to the benefit not only of our customers but to the Danish society as a whole.”
The joint venture is designed to create a robust mobile operator in the country, with a combined mobile subscriptions figure of approximately 3.5 million and a joint market share of roughly 40%.
“Competition in Denmark is intense and we face continued pressure on revenue growth and profitability, making consolidation inevitable,” said Kjell Morten Johnsen, EVP and head of Telenor Region Europe.
“[The joint venture means] we will be able to offer our customers a high-quality network with outstanding connectivity and the best customer experience in Denmark.”
The deal is still awaiting approval from the European Commission, and the integration process, between 2015 and 2017, has an estimated price tag of 800 million Danish crowns ($132.7 million).
In February this year, TeliaSonera revealed a joint venture with DNA in Finland to develop network sharing in the country. Earlier this week, Norwegian regulators raised concerns over TeliaSonera’s attempt to acquire Tele2’s Norwegian operations.
