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KPN increases international focus to boost revenues
01 May 1999
KPN, the incumbent in the Netherlands, is under more and more pressure domestically, as new entrants use the market as a stepping stone into Europe. Recently the operator has focused more on pan-European and other international opportunities, forming a JV with Qwest. Chairman Wim Dik talks to Mark Holmes about KPN's plans for growth.
The Dutch market was fully liberalized in June 1997, six months
before the EU deadline. Liberalization led to a sharp decline in
prices and a number of decisions by the regulator to promote
competition, that were contested by KPN, the incumbent. A number of
new entrants have been aggressively seeking market share, as Chris
Hoare, a telecoms equity analyst at HSBC, explains: "The Dutch
fixed market is very competitive and the regulator is tough. There
are a number of new entrants. A lot of companies see Holland as a
bridgehead into Europe, which is unfortunate for the likes of KPN,
because this means that they are going to have to compete with all
these guys. So there are a lot of competitors, as well as a tough
regulatory environment."
Hoare believes that their growth prospects may be constrained by
the nature of the market they are competing in: "I think...
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