Telenor is the first major operator to sell a stake in its IoT division, but probably not the last

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.