The Competition Authority approves Ljósleiðarinn's acquisition of Sýn's core network

The Competition Authority
has published a decision where the purchase of Sýn hf.'s core network by Ljósleiðarinn ehf. is
authorised. It
is the conclusion of the Competition Authority that the merger does not have a harmful effect on
competition such that there is a need or justification for intervention in the trade.
The Competition Authority made observations and received explanations from the merger parties.
regarding individual matters in the wholesale agreement of the associations following the merger and
The merger partners responded to those comments.

Prehistory
The purchase can be traced to the fact that in 2022, Ljósleiðarinn was granted the right of control.
two fibre-optic cables owned by the Icelandic state and running around
Iceland. This was following the government's tender for the use of the cables (so-called
NATO threads) and will enable Ljósleiðarinn to offer wholesale
its telecommunications service throughout the entire country, but until now the service
the company's operations have largely been limited to the capital region and
municipalities in the south-west corner of the country. Previously, Míla was the only company that could
offered such a service nationwide and has had five fibre-optic cables for its
operation.

We
In the state auction, Sýn lost threads that the company had had at its disposal and used.
for its backbone network and could therefore only run it to a limited extent.
With the purchase of the fibre-optic network, Sýn's operations are reduced.
wholesale markets, but the company can, however, direct increased business to
Wholesale products to the Optician and the business likewise accelerated
its development of a nationwide telecommunications network.

That
The Competition Authority's assessment is that the expansion of the fibre network will create more
options for data transmission nationwide for telecommunications companies and two nationwide
basic network. Is the merger part of that build-up of the fibre network, according to the data
of the matter. Is this increase in options positive for both infrastructure competition and for
competition in the various wholesale telecommunications markets, which will also come
to benefit consumers and businesses in the country's sparsely populated areas.