KPN’s Telfort unit faces fine for not using its UMTS allocation

16 Jun 2008

Telfort, a unit of Dutch telco KPN, could be fined for failing to use its UMTS frequencies, Thomson Financial reports citing an article in the Het Financieele Dagblad newspaper. It is understood the fines would amount to EUR5 million (USD7.69 million) for every quarter that elapses in which the operator has not set up a 3G network to provide mobile internet services, up to a maximum limit of EUR40 million. Telfort acquired its UMTS licence via an auction in 2000, but has not started using the frequency and market watchdog Agentschap Telecom claims this is preventing competition. KPN could appeal the decision, but also says it is exploring options of how to use the unit’s 3G frequencies.

Netherlands, Telfort