KPN dismisses M&A rumours and points to fixed line recovery

16 Nov 2006

The Netherlands’ dominant telecoms operator KPN has scotched rumours that it is in merger-and-acquisition discussions with any other companies at the moment and instead reiterated its view that revenues from fixed line services are in recovery. ‘So far we’ve not bought anyone, [and] we’re not in serious discussions with anyone at the moment, said Ad Scheepbouwer, chief executive of the former monopoly. ‘We’re looking at a number of markets. Most of them would be in western Europe. We’re looking at acquiring companies, but only if the fundamentals are right and only if it doesn’t cost too much,’ he added. Scheepbouwer went on to say that his company would consider setting up as a virtual operator in markets where it currently has no presence, including possible mobile virtual network operator (MVNO) deals if that ‘makes sense’.

KPN’s CEO also said that he soon hoped to see an end to declining revenues from the group’s fixed line business as the company acquires ISPs and starts to make capital from new services such as IPTV. In 2007 KPN plans to begin offering IPTV ‘in earnest’ and as a result Scheepbouwer hopes to see an inflection point when revenues from the unit start to grow again.

Netherlands, KPN