Industria and global alternative investment group Novator announced the conclusion of a partnership that will see the company play a leading role in trials planned to act as a precursor to the rollout of Iceland's first third-generation (3G) and fixed convergent communications network.

Under the terms of the agreement, Industria will serve as a partner on the multi-national project, working in three key areas. The company will be responsible for overall systems integration, project management and provide a range of converged value-added services.

These include IPTV content strategies and implementation for broadcast channels, video-on-demand, and on-line gaming, in addition to digital home security and a range of convergence applications for fixed and mobile networks.

A Novator subsidiary in Iceland set up to implement the project has already obtained a 3G trial licence from the national regulator, the Icelandic Post and Telecom Administrator, to commence tests and initial deployment. The test network will be based on HSDPA 3.5G leading-edge technology, and the company has also applied for a WiMAX (4G) licence for stationary high-bandwidth wireless access, to further expand its services portfolio.

"Despite the fact that Iceland currently has the world's largest level of broadband penetration and one of its highest rates of mobile phone ownership, its telecoms market is not enjoying the benefits of strong competition," says Novator director Tomas Hansson.

"Service prices to consumers are high and many innovative service solutions have not been introduced to the market. Novator's objective is to introduce 3G technology and services to the Icelandic telecom market and offer competitive prices."

"Being selected to work with an ambitious and technologically aware investor like Novator represents a fantastic opportunity for Industria," says Industria CEO Gudjon Mar Gudjonsson.

"Industria provides Novator with a team of highly experienced professionals specialising in every aspect of broadband rollout for a project that could radically alter the landscape of the Icelandic telecoms market, while utilising our own resources to the full."