Three major Danish pension funds, ATP, PFA, and PKA, recently sold their stake in TDC, a 144-year-old telecommunications company, to Macquarie. This move has sparked debate, with former finance ministers Mogens Lykketoft and Henning Dyremose offering their perspectives. However, their opinions on the matter are largely inconsequential to the current situation.

Lykketoft, who privatized TDC in the late 1990s, and Dyremose, a former CEO and chairman of TDC, have voiced concerns about the sale and its potential implications for Danish infrastructure. Dyremose attributes TDC’s struggles to the removal of voting rights restrictions in 2005, while Lykketoft worries about a critical piece of Danish infrastructure falling entirely into foreign hands.

Despite their experience, their views are outdated and fail to acknowledge the significant investments and advancements TDC has made under its current ownership. TDC was the first in Denmark to launch 5G, which now covers nearly the entire country. It has consistently been recognized as having the best mobile network in Denmark, and Denmark boasts some of the fastest mobile internet speeds in Europe.

Macquarie, the acquiring company, has pledged to continue TDC’s current strategy, complete the fiber network rollout, invest in IT and security, and uphold climate goals. While Macquarie’s reputation as a capital fund may raise concerns, it is important to recognize that capital funds typically aim to develop acquired companies for future sale, not to deplete them.

The Danish telecommunications infrastructure has thrived through private investment, without relying on state funds. Claims that TDC and its subsidiary TDC Net are uniquely essential Danish infrastructure are also exaggerated. Competitors exist in mobile telephony and fiber optics, and foreign ownership is already present in other parts of the Danish telecommunications infrastructure.

The concern that TDC is unique Danish infrastructure is overblown given current market conditions. The dominance of American tech companies in the daily lives of Danes and the availability of alternative providers should TDC falter.

Ultimately, the decision by ATP, PFA, and PKA to sell their stake reflects the changing technological landscape and their belief that their involvement is no longer necessary. It is unlikely that Macquarie will retain ownership of TDC in the long term, as market consolidation is expected to occur, potentially involving Danish or foreign buyers.