EQT has his sights set to become one of the major players in the Swedish broadband market. The company has made it clear earlier.
In late March, declared Thomas von Koch, a partner at venture capital firm, that it is prepared to invest up to 30 billion to buy up the city network in Sweden. City networks are generally owned by local governments or any of their companies and operates distribution networks used both to provide broadband high performance and convey television / video and telephony.
biggest in this market, Telia who are doing an intensive expansion of fiber networks in many parts of Sweden. By buying up urban networks and linking them with EQT expects to be a major competitor to Telia.
On Monday, it becomes clear that EQT is now taking the first step in realizing the strategy. The company buys network Ip-only, headquartered in Uppsala. Ip-only include a network that connects the major cities in the Nordic region and metropolitan area networks in several places, including in Uppsala. A total of 3 billion invested in the nets Ip-only drives.
– Right Here (purchase of Ip-only) is not such a big deal. It’s only about a few hundred million. But EQT see great opportunities to invest in the Swedish market and Ip-only is a good base to work further away, says Gunnar Asp Industrial Advisor to EQT and prospective new chairman of Ip-only.
idea is that Ip-only with money from EQT to grow faster under its own power, while there will be more acquisitions. The goal of EQT is to build up a significantly larger operator.
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As Gunnar Asp see it is the urban networks basically too small to be able to compete with Telia. He describes the city networks as “small solitaires” who do not have sufficient size to be able to conclude the necessary agreements, both with corporate customers and suppliers.
– Should you be inside in this business you have to be great. It is simply too difficult for others to interact with a large number of local players. Therefore, the market is consolidating, while it is the right time to create a balance against Telia, says Gunnar Asp, who previously served as president of cable television company Com Hem.
The rapid change in the broadband market is driven right now much of that more people choose to watch TV / video over broadband connection and use various cloud services, where data is stored in large data centers. For it will be corporate data traffic is increasing rapidly.
It allows total data traffic in the networks, both fixed and mobile, is increasing dramatically. Telephone companies and other service providers have therefore great need to expand and increase network capacity.
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