Telenor ASA — Capital/Financing Update 2023

Sep 22, 2023

Successful spectrum award in Sweden

Successful spectrum award in Sweden

The Swedish spectrum renewal auction ended on 21 September after OSE close. The joint venture between Telenor and Tele2, Net4Mobility (N4M), successfully acquired 2x10 MHz, 2x20 MHz and 2x30 MHz in the 900 MHz, 2100 MHz and 2600 MHz bands, respectively. The start date of the licenses is 1 January 2026, upon expiry of the existing licenses in the band. N4M will pay SEK 1,474m for this spectrum, which has a duration of 23, 25 and 25 years, respectively, per frequency band. The amount paid will be paid 50% during Q4 2023 and the remainder in 2025. Telenor’s share of these payments is 50%.

“I am very pleased with the outcome of the auction, financially and operationally. N4M was able to reacquire spectrum in three frequency bands at a favourable price. The total amount for the 2.60 MHz is comparable to what was paid for 2x10 MHz in the 700 MHz band in 2019”, says Tone Hegland Bachke, Chief Financial Officer of Telenor.

The modernized N4M network will use up to 320 MHz across seven bands in the initial period subsequent to 2026. The portfolio adjustment from 2026 will not impact N4M’s current network and network performance will not be constrained by the spectrum portfolio. Mobile Network Operators in Sweden are no longer spectrum-constrained in the same way as was the case historically. We will now work to deploy the most cost-efficient mix of spectrum, sites, radio equipment and software in order to reach an optimal network quality to the benefit of our customers.

“There will be more spectrum released in Europe and in Sweden in the years to come, and optimal capital allocation will continue to require careful analysis”, said Tone Hegland Bachke, Chief Financial Officer of Telenor.