Telenor completes satellite business sale to Space Norway

Telenor Norway has finalised the sale of its satellite business to Space Norway valued at NOK 2,36 billion ($228 million).

Armita Satari

January 5, 2024

2 Min Read

Following approval from the Norwegian Parliament prior to Christmas, Norwegian majority state-owned telecommunications company, Telenor, has now ratified the sale of its satellite business arm to Space Norway, an organisation fully owned by the Norwegian Ministry of Trade, Industry and Fisheries.

The agreement for the sale was first announced last November between the two entities and is valued at NOK 2,36 billion ($228 million). The acquisition is financed with equity for which the Norwegian government provided capital to Space Norway.

Telenor Satellite, the entity sold, is a European provider of satellite TV broadcast and VSAT data communications services for maritime and land-based sectors. This acquisition gives Space Norway, a group comprised of Statsat SA, HEOSAT, and KSAT, a strategic focus while making it the largest satellite centre in the country and a significant player in Europe, according to Space Norway CEO.

“With ownership of Telenor Satellite, Space Norway gains new opportunities for development and growth. We are now the largest and leading satellite competence centre in Norway and a significant satellite operator in Europe,” said Space Norway’s CEO, Dag H. Stølan.

The organisation believes space-based infrastructure is increasingly a strategic and important tool to ensure both the country’s sovereignty and provision of critical services including safety.

“[T]he acquisition ensures that Norway, in a time of increasing geopolitical unrest, maintains control over satellites crucial for critical societal functions and strategically important for the country,” said the Norwegian Minister of Trade and Industry, Jan Christian Vestre in a November announcement.

But it is about more than what the entities can achieve in terms of Norway's safety and critical infrastructure alone. “Together, we will continue to develop the Norwegian space sector as well as serve our clients throughout the Nordics and EMEA” said Telenor Satellite’s CEO, Morten Tengs.

Meanwhile, highlighting the acquisition as a positive development for Telenor Satellite Tengs acknowledges that Space Norway has some of the most innovative projects in the industry. “We are pleased to be part of Space Norway. We are excited to bring our industry experience and expertise to the table.”

While this sale means a divestment for Telenor of its satellite operations, the telco will continue to offer satellite capabilities. As such, when the sale was first agreed the two entities also signed a letter of intent for continued cooperation on new satellite services.

“Telenor will no longer operate satellites and we will focus on our core business. We are confident that Space Norway is the best possible owner to further develop Telenor Satellite. The letter of Intent ensures continuity and quality in our customer services,” said EVP Dan Ouchterlony at Telenor.

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