Denmark Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• The major driving factors of the market include the growth of 5G, the rising implementation of IoT, and the need for high-speed connectivity across the country.
• In August 2023, Ericsson and Danish digital infrastructure provider TDC NET successfully activated Denmark's inaugural 5G Standalone (5G SA) network. This shift to advanced 5G SA technology bolsters the local 5G landscape, enhances innovation in various industries, and accelerates new possibilities for end-users. The activation marks a significant stride in connectivity, paving the way for groundbreaking developments and positioning Denmark as a trailblazer in technological evolution.
• Denmark's central, regional, and local governments agreed on a new joint government digital strategy for 2022-2025. The strategy includes addressing labor shortages, mitigating climate change, and promoting digital inclusion. Denmark has one of the most digitized public sectors in the world, mainly due to the public sector's strong collaboration over the last two decades. Central, regional, and local governments have approved the sixth Joint Government Digital Strategy.
• Recently, the Danish government signed the Berlin Declaration on Digital Society and Value-Based Digital Government, reaffirming its commitment, along with other EU Member States, to foster digital transformation so that citizens and businesses can avail themselves of the benefits and opportunities provided by modern digital technologies. The Declaration aspires to contribute to a value-based digital transformation in European countries by addressing and promoting digital participation and inclusion. Such collaborations are expected to propel the Danish telecom market.
• The rising use of technologies such as cloud computing has led to the development of high-quality cloud-based applications. Cloud computing, which provides pay-as-you-go, low-cost computing resources, is rapidly seeing its use growing as an alternative to traditional information technology (IT)-based organizations. As more users migrate their applications to cloud environments, service level agreements (SLAs) between customers and cloud providers become an essential factor to consider. This is creating demand for high-speed connectivity, thus contributing to market growth.

Denmark Telecom Market Trends

Rising Demand for 5G

• Danish operators are prioritizing two key strategies: expanding their 5G networks and undergoing organizational restructuring. This dual focus aims to not only cater to a broader clientele but also to do so with a more strategic approach. This shift is urgent due to the capital-intensive nature of acquiring 5G licenses and building networks. Compounding this urgency is the challenge that major players face, who, despite having wireline businesses, are witnessing a decline in their multi-play offerings.
• Amid these challenges, operators have a significant opportunity to integrate their 5G services with next-gen wireline access networks, particularly fiber optics. Furthermore, the prospects are promising, with smart-city edge computing and IoT applications poised to emerge as primary revenue generators.
• In October 2023, 3 Denmark announced a partnership with Fastspeed, a Danish internet service provider (ISP), to introduce 5G Fixed Wireless Access (FWA) internet services. Through this collaboration, Fastspeed, known for its competitive high-speed internet offerings, is diversifying its portfolio into mobile broadband. By leasing network access from 3 Denmark, Fastspeed is tapping into 3's robust 5G network, enhancing its wireless connectivity options for both private and business clients.
• In January 2024, following a successful deployment in Sweden, 3 Denmark selected Net Insight to enhance its 5G network's synchronization capabilities. By integrating Net Insight’s state-of-the-art Zyntai nodes, 3 Denmark is pioneering the adoption of this advanced synchronization solution. Collaborating closely, the two firms have been strategizing the deployment to cut synchronization costs and achieve GPS/GNSS independence. This procurement not only underlines a pivotal advancement in 3 Denmark's 5G evolution but also paves the way for a seamless network expansion.

Data and Messaging Services Analyzed to Grow Significantly During the Forecast Period

• Denmark boasts one of the world's highest broadband penetration rates, with superfast connections nearly universally accessible nationwide. Progressive regulations bolster the country's robust cable and DSL infrastructure, facilitating operator access to copper and fiber networks.
• Fiber networks are rapidly expanding, with various community and metropolitan initiatives complementing TDC's national fiber deployment. Additionally, several wholesale fiber schemes have further enhanced the accessibility of fiber broadband services.
• According to GSMA Intelligence, Denmark boasted 9.03 million cellular mobile connections as of January 2024, representing a penetration rate of 152.4% of the population. This marked an increase of 100 thousand connections, or 1.1%, from the beginning of 2023.
• According to Ookla, Denmark saw a significant surge in its median mobile internet speed, jumping by 33.59 Mbps, marking a 29.6% increase in the 12 months leading up to 2024. Ookla's findings indicate that fixed internet speeds in Denmark also rose, although at a slightly lower rate, by 21.11 Mbps, reflecting an 11.2% uptick during the same period.

Denmark Telecom Industry Overview

• April 2024: Telia Company finalized the sale of its operations and network assets in Denmark to Norlys AmbA (Norlys) for an enterprise value of DKK 6.25 billion (approximately USD 0.89 billion), with the deal structured on a cash and debt-free basis. Telia plans to utilize the proceeds from this sale primarily for deleveraging. Post-transaction, Telia's net debt/adjusted EBITDA ratio comfortably sat at the lower end of its targeted range of 2.0-2.5x.
• September 2023: Ericsson rolled out Denmark's 5G Standalone (SA) network. This shift from Non-Standalone (NSA) to SA was made possible by Ericsson's innovative dual-mode 5G core solution. By adopting a cloud-native software architecture, TDC NET took a significant step in its technological evolution, ensuring swift and dependable service innovations for its subscribers and service providers.

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