Telenor is the first major operator to sell a stake in its IoT division, but probably not the last
"IoT has so many differences from the core telecoms operator business that it is perhaps only surprising that this sort of deal has not happened before."
On 12 May 2026, Telenor announced that its IoT business, Telenor Connexion, was to be moved into a joint-venture vehicle with the investment fund Verdane as the new shareholder. The deal is significant because Telenor is the first major MNO to sell a stake in its IoT division.
The logic of spinning out an IoT division is well understood. It can raise funds and, perhaps more significantly, allow the new entity greater flexibility – an advantage given that a global IoT business is very different from a traditional telecoms operator.
A central question is perhaps not why this deal is happening, but why it or other similar deals have not happened sooner. Other operators will be watching it closely and more transactions may follow.
USD549
Log in to check if this content is included in your content subscription.
Author
Tom Rebbeck
Partner, expert in telecomsRelated items
Article
Edge-dependent, physical AI use cases place new requirements on IoT connectivity providers
Article
IoT providers can differentiate by simplifying IoT adoption and partnering to control costs
Tracker
IoT/M2M revenue and connections tracker 1H 2026