TeliaSonera Considering Wireline Exit

According to local press reports in Sweden, TeliaSonera is considering the sale of its wireline operations in Norway. Swedish business daily Dagens Industri reported that TeliaSonera issue an investment memorandum to potential buyers of NextGenTel, estimating the sale could raise SEK1-1.5bn (US$139-209mn). In the wake of the underperformance of the wireline broadband market versus mobile alternatives, and NextGenTel's underperformance in the wireline market, BMI believes divesting the asset is a logical step. However, one risk arising from the deal is the potential impact on operating costs in wireless data provision where wireline infrastructure can provide low cost high quality backhaul.

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