Market Trends of Norway Telecom Industry
Wireless Voice Services to Gain a Prominent Market Share
- Norway stands out as a trailblazer in tech, boasting near-universal Internet, mobile telephony, and broadband access. Wireless devices, such as laptops and smartphones, dominate the country's Internet landscape. The widespread availability of these technologies has significantly contributed to the country's digital transformation and economic growth.
- Internet adoption in Norway has been nothing short of remarkable, with 98% of the population online. This high level of connectivity has facilitated various online services, including e-commerce, e-government, and online education. Interestingly, mobile voice technology surpasses even Internet penetration, highlighting the importance of mobile communication in daily life. The country embraces mobile tech, from 4G to the latest 5G advancements, ensuring that its citizens have access to the fastest and most reliable mobile networks.
- Voice traffic, which dominates cellular and Wi-Fi networks, is popular among users and a key revenue stream for operators. Wi-Fi calling, in particular, is gaining traction as a premium service. This technology allows users to make voice calls over Wi-Fi networks, providing better coverage and call quality. Operators offering Wi-Fi calling on their networks enjoy a competitive edge, ensuring a top-notch user experience and fostering customer loyalty.
- Operators in Norway have expanded their networks significantly with enhanced performance and user accessibility. This has enabled them to offer exclusive Wi-Fi voice services or collaborate with cellular operators for a Wi-Fi-centric approach. The continuous investment in network infrastructure has resulted in improved service quality and customer satisfaction.
- In Norway, manufacturers and operators are actively enhancing Wi-Fi voice calling, focusing on availability, reliability, and user-friendliness. Operators are bolstering their networks by expanding both size and capacity and integrating 5 GHz radios to ensure ample network capabilities. Concurrently, device manufacturers are enhancing Wi-Fi voice calling features on their smartphones. Furthermore, 5G smartphones come with a default voice codec that supports "HD voice+" through 3GPP's Enhanced Voice Services (EVS) standard.
- In February 2024, the Nordic Investment Bank (NIB) and Norwegian firm Lyse AS inked a loan deal worth around USD 95 million. This funding is earmarked for Lyse's ambitious 5G base station project in Norway. The initiative involves upgrading over 2,800 existing stations and setting up an additional 3,500 new ones, with a completion timeline spanning three years. With a goal to cover 99.5% of Norway's population, this 5G expansion is a milestone in Norway's digital infrastructure.
- 5G's arrival heralds a new era of connectivity in Norway. It promises lightning-fast broadband, ultra-reliable communication, and significant improvements in energy efficiency. With features like ten times more connection density, 100 times greater efficiency, and a staggering 10,000 times more traffic capacity, the leap from current networks is expected to be monumental. 5G technology presents an opportunity for telecommunication companies to shift their focus from pricing to service quality.
- 5G is projected to see widespread adoption by 2025. Companies like Ice Norway are strategically positioning themselves to disrupt the Norwegian market well ahead of the curve. As one of Norway's prominent mobile network operators, Ice boasts its own telecommunications network and cloud infrastructure. The company is channeling all its resources into pioneering new services and platforms, aiming to be the first to market.
Understand The Key Trends Shaping This Market
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Pay-TV Services to Generate Significant Revenues During the Forecast Period
- Telenor, Norway's leading telecommunications and digital services provider, has spearheaded the nationwide deployment of a unified pay-TV system. This system seamlessly delivers services to all user devices, ranging from set-top boxes and tablets to smartphones, Apple TVs, PCs, and Android TV devices. By integrating these diverse platforms, Telenor ensures a consistent and high-quality viewing experience for all its subscribers.
- Market vendors such as Telenor are committed to offering their customer base a top-tier pay-TV experience. The company's strategic emphasis on business development and content curation has yielded exceptional results in the Norwegian market. Telenor's dedication to securing the best content lineup has been instrumental in enhancing the overall customer experience, making it a preferred choice for many households in Norway.
- Telenor Nordics recently collaborated with Viaplay Group, a prominent sports content provider, to ensure customers enjoy premium content tailored to their preferences across all platforms. Through this collaboration, Telenor's customers can gain access to Viaplay's extensive library of high-quality content, enriching Telenor's TV offerings in Norway. This agreement broadens the range of available content and provides customers with the flexibility to access their favorite shows and sports events on any device.
- In Norway, Viaplay Group and Telenor have forged a long-term distribution partnership, granting 1 million TV customers of Telenor access to Viaplay's sports, series, and film content. This collaboration extends to distributing Viaplay's streaming service, its linear TV, pay-TV channels, and the V Premium package, which notably includes Premier League football. This partnership aims to enhance the viewing experience of customers by providing them with a wide array of high-quality content.
- In April 2024, LG TV owners in Europe, including Norway, gained access to new ad-supported streaming television (FAST) channels. Users can now enjoy a broad range of Lionsgate channels, which enhances their content options. This development is part of a broader strategy to offer more diverse and high-quality content to viewers across European countries, ensuring that they have access to the best entertainment available.
- As per a 2023 report by the Norwegian Communications Authority, the introduction of fixed wireless internet access (FWA) prompted Norwegian ISPs to bundle TV and video streaming with their internet services. By 2023, the average download speed for end-users doubled, with a consistent annual growth rate of 10-20 Mbit/s. This significant improvement in internet speeds has made it possible for users to enjoy high-quality streaming services without interruptions.
- Market vendors are increasingly emphasizing fixed wireless internet access, often bundling it with TV and video streaming services. Notably, these services are managed on par with regular internet traffic, even for fixed wireless connections. ISPs may also provide specialized services like voice-over-IP and IPTV. This approach ensures that users receive a seamless and high-quality experience, regardless of the type of service they are using.
