Swedish operator buys Fallo and its 45,000 customers; sees continued interest in ‘stripped-down services’
Telia Company has acquired Swedish virtual operator Fello, a move that gives it a new low-cost brand within its portfolio.
The Swedish incumbent, which has hosted Fello on its network since the latter launched in 2013, did not disclose the value of the deal.
Gothenburg-based Fello has 45,000 customers and seven employees, who will be retained under the transaction, as will the Fello brand.
"Fello AB is an innovative company with a strong brand that has grown rapidly and doubled its customer base since 2018," said Andreas Ekström, head of commercial business for Telia Sweden.
"We see continued interest in stripped-down services and Fello AB will complement our existing activities in new areas in a positive way," Ekström added.
Telia said the deal, effective 1 July, does not require the approval of competition authorities.
Telia is Sweden’s largest mobile operator with a customer base of 6.1 million as of the end of the first quarter, including just over 1 million machine-to-machine (M2M) connections. According to regulatory body the Swedish Post and Telecom Authority (PTS), Telia had a market share of 36.1% in the middle of last year, with major rivals Tele2/TDC, Telenor and 3 claiming 27.8%, 18.9% and 13.6% respectively.
MVNOs are categorised as ‘others’, serving just 3.6% of the market.