Telenor and Verdane are creating a new 50/50 ownership structure for Telenor Connexion, the group’s managed IoT connectivity business. The move is designed to support the company’s international expansion while keeping Telenor as a long-term strategic industrial owner.
Global IoT connectivity has become a scale business, but not a simple one. Large OEMs need more than roaming SIMs: they need lifecycle management, contractual stability, cross-border service continuity and the ability to support connected products for years after the initial sale. That combination requires telecom infrastructure, specialist execution and the ability to support global deployments over time.
Telenor is now reshaping the structure around one of its most established IoT assets. The Norwegian operator has agreed to partner with Verdane to establish joint ownership of Telenor Connexion, the group’s specialised managed IoT connectivity unit. The transaction is expected to close during 2026, subject to regulatory approvals.
The arrangement is not a straightforward disposal of an IoT unit, nor a conventional telecom restructuring. Telenor will remain a 50 percent owner, while Verdane will hold the remaining 50 percent stake. The new company will have a board with representatives from both owners and an independent chair. Pekka Lundmark, former President and CEO of Nokia, is expected to take that role after closing, while Mats Lundquist will continue as CEO of Telenor Connexion.
A different model for scaling managed IoT
What makes the announcement distinct is the combination of operator ownership and growth-focused investment backing. Many telecom groups have either kept IoT connectivity inside the core enterprise business or sold assets outright. Telenor’s approach sits between those models: it keeps the industrial backing of a mobile network operator while creating a structure intended to accelerate expansion.
Telenor Connexion is already a significant player in managed IoT connectivity. According to the company, it has 31 million IoT SIM cards in operation, supports deployments in more than 200 countries and ranks among the top global managed IoT connectivity providers outside China.
For IoT professionals, the more important signal is strategic rather than purely financial. The deal reflects how managed IoT connectivity is increasingly viewed as a long-term platform business supporting connected products across industries such as automotive, industrial equipment and smart infrastructure.
Why this matters for OEMs and the IoT ecosystem
Telenor Connexion’s customer use cases span connected cars, water pumps and robotic lawn mowers. These examples point to a broad requirement across the market: OEMs increasingly need connectivity providers capable of managing fleets of devices across borders, product generations and regulatory environments.
The practical implication for OEMs is likely to be continuity combined with a stronger focus on international growth. Telenor remains involved as a strategic owner, and the current management team will stay in place. At the same time, the new structure is expected to give Telenor Connexion greater flexibility to expand its capabilities and international reach.
For connectivity providers, the deal is another sign that managed IoT is consolidating around platforms with global scale. Smaller providers and regional MVNOs may face increasing pressure to differentiate through vertical expertise, integration services or local regulatory knowledge. System integrators, meanwhile, may see a partner with broader ambitions and greater operational independence while still retaining links to Telenor’s telecom infrastructure and enterprise ecosystem.
The transaction also follows Telenor’s January 2026 consolidation of its Nordic IoT operations under a unified Telenor IoT structure, with Telenor Connexion operating as the group’s specialised managed IoT unit. That earlier move simplified the company’s IoT positioning, while the Verdane partnership now adds a dedicated structure focused on growth and expansion.
The final test will be execution after regulatory approval. The announcement outlines governance and strategic intent, but it does not yet specify future acquisitions, new products or additional markets. For enterprises and industrial customers, the near-term significance is therefore structural: Telenor Connexion is being positioned as a more independent global IoT connectivity company while maintaining strong ties to Telenor’s operator infrastructure and experience.
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