Telenor Buys Tiscali Unit

Telenor acquires Tiscali's Norwegian branch

August 23, 2004

1 Min Read

FORNEBU, Norway -- Telenor has entered into an agreement with Tiscali to acquire the company's Norwegian operation. Tiscali AS has a total of 45,000 customers, including 18,000 ADSL-customers and 27,000 customers with dial-up Internet. Telenor will pay Euro 6 million for the company. The acquisition by Telenor is subject to the approval of the Norwegian Competition Authority.

The Norwegian broadband market is experiencing strong growth and is expected to add more than 200,000 new mass-market customers in 2004. There are approximately 150 suppliers in the market today and competition is strong. From Telenor's point of view the level of competition will not be influenced by the acquisition, neither with regards to price -- nor market development.

"Tiscali has been a reseller of Telenor wholesale products and since the company has decided to withdraw from the Norwegian market, it is natural for us to seek to acquire and continue the customer relationships," says Morten Karlsen Sorby, Executive Vice President in Telenor. "We look forward to the competition authorities' processing of this case and hope for a quick resolution."

Both Tiscali and Telenor offer Internet services nationwide and there will be no practical consequences for the customers when this acquisition is conducted.

"We hope Tiscali's customers will benefit from and enjoy our highly competitive offers with a wide range of innovative and advanced services. Telenor offers the best security products as an integral part of the subscriptions and broadband customers will have access to the content portal iCanal incorporating a variety of games, music and video," said Morten Karlsen Sorby.

Telenor ASA


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