LetterOne Announces Strategic Investment in Qvantel
LONDON, October 31, 2016
LetterOne (L1), the international investment business, headquartered in Luxembourg, today announces that it has made a strategic investment in Qvantel, the leading provider of cloud-based Business Support Solutions (“BSS”) for telecom operators.
This is the next step in L1 Technology’s strategy to invest in B2B and B2C disruptive technologies in the telecoms and technology sector.
L1 Technology is making strategic investments in leading digital pioneer businesses, which are disrupting traditional business models, and which can benefit from the larger customer reach of telecoms operators and grow symbiotically together.
The Qvantel Group, which is headquartered in Finland, provides B2B digital cloud-based Business Support System software and services for telecom operators. Their solutions enable operators to provide much more comprehensive, cost efficient and unrivalled customer experience.
L1 Technology aims to invest overall US$2-3 billion in mid-to-late-stage technology growth opportunities internationally.
On the B2C side L1 Technology recently announced a $50 million investment in FreedomPop, which is disrupting the businesses of traditional mobile carriers, by giving people ways to use mobile devices free of call charges.
Commenting on this strategic Investment Alexey Reznikovich, L1 Technology’s Managing Partner, said
“We are very pleased with our investment announced today. Our strategy at L1 Technology is to look for digital companies that will create new digital business operating models of the future which will enable the telecoms industry to capitalize on a key competitive advantage, which is its relationship with its customers”.
“As strategic investors in telecoms companies, we believe that the sector needs to disrupt itself, and evolve its operating models and revenue streams, before it is disrupted by others”.
Matti Roto, Chairman of the Board of Qvantel said
“Our Business Support Systems bring significant cost savings for telecom operators and increase the efficiency of their operations. I am proud that we are able to provide a great customer experience, helping our clients perform better towards the end-customer. This combined with the increased need for telecom operators to respond to changing consumer demands, means BSS is a key element of any operator’s network and business strategy”.
Qvantel has core business operations in Finland, Sweden, India, Spain, Switzerland. In 2016 Qvantel expanded its global presence by opening an office in the USA that will serve the fast growing telecommunications market in the region.
Ericsson and Qvantel recently signed an agreement, through which Qvantel’s product will be integrated into Ericsson’s BSS offering to telecom operators. Ericsson is a global leader in delivering ICT solutions. 40% of the world’s mobile traffic is carried over Ericsson networks.