Copying and distributing are prohibited without permission of the publisher
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
Hoare believes that their growth prospects may be
constrained by the nature of the market they are competing in:
To continue reading this article, please register for an extended free trial by going to the box below. If you are already a subscriber or a trialist, please log in...
Already have an account?
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to all of Global Telecoms Business(possibly excluding some surveys and articles).
Registration is quick. Start your free extended trial today.