The competition authority concluded that two deals involving major operators would not harm the existence or development of effective competition
Telenor has acquired a majority stake in rival ISP Bahnhof
On 2 November 2026, the Swedish Competition Authority (Konkurrensverket, or KKV) approved at Phase 1 the acquisition by Telenor of a controlling stake (57.5% of shares and 87.9% of voting rights) in Bahnhof. Telenor first announced the deal in July 2026, valuing Bahnhof at SEK6.1bn (£464m) on an enterprise value basis. It then notified the proposed transaction to the KKV on 28 September 2026 for review under the country’s Competition Act. Telenor provides end-to-end telecoms solutions, including mobile, fixed broadband and television services, to both private and business customers throughout Sweden under several brands (e.g. Telenor, Ownit). It operates in the fixed broadband market without its own network infrastructure, accounting for >14% of total subscribers, according to data from the Swedish Post and Telecom Authority (PTS – the communications regulator). Bahnhof offers broadband, network and IT infrastructure services to both private and corporate customers, with limited operations in fixed telephony and television. Like Telenor, Bahnhof is primarily active as a retail ISP (i.e. it has not itself built a broadband network), with a market share of 8.5%.
The KKV has opted not to undertake an in-depth review into the transaction
Telenor obtained the required foreign direct investment (FDI) clearance from the Swedish Government’s Inspectorate of Strategic Products (ISP) on 20 October 2026. The KKV’s Phase 1 investigation, meanwhile, has focused on the horizontal relationship between Telenor and Bahnhof, principally in the supply of fibre broadband services to end users. During the investigation, the authority has been in contact with a number of the parties’ competitors, obtained information from the PTS and conducted a survey with a selection of Telenor and Bahnhof's “group agreement customers” (i.e. housing associations). Despite certain undefined “indications” of potential harm, the KKV's overall assessment is that the notified concentration is not likely to significantly impede the existence or development of effective competition in the fixed broadband market. It has therefore decided not to continue with its review and that the deal may proceed “without action”. As the majority shareholder in Bahnhof, Telenor will be required to make a mandatory cash offer to the remaining shareholders, which it intends to do so at SEK62 (£4.72) per share as soon as practicable following completion.
Telia has already strengthened its market leadership position
According to Telenor, the Bahnhof acquisition would provide it with the scale to compete more effectively and to create long-term value for customers and shareholders. Together, the two operators would create a stronger third player in the fixed broadband market, narrowly behind Tele2 by share of subscribers. The deal also reflects a trend in the consolidation of the sector, following on from Telia’s acquisition of Bredband2. In October 2025, the KKV opened a “special investigation” into the transaction, not least because Telia – the former incumbent – remains the largest supplier of fibre broadband services in Sweden, with Bredband2 third by subscribers and fifth in terms of revenue. The authority’s information gathering highlighted that Bredband2 had been a significant challenger to the major operators (often acting as a “price squeezer”), managing to grow its market share over recent years unlike many of its smaller peers. While PTS data suggests that the merged entity would account for over 41% of all broadband subscribers, the KKV’s in-depth review found that Telia would continue to face competition from national and local operators, and as such the deal would be unlikely to harm competition within the country as a whole or in a substantial part of it.
