KPN will not sell E-Plus, CEO says

14 Jun 2010

Ad Scheepbouwer, the CEO of Dutch telecoms group KPN, has told Reuters that the company is committed to the German wireless market and will not sell its local mobile unit E-Plus. The cellco has about half the market share of Deutsche Telekom’s mobile arm T-Mobile Deutschland and UK-based Vodafone in Germany, but concerns have grown that it is not investing enough in the country to keep its place and that it might have to sell the cash-generating business, possibly to Spain’s Telefonica. ‘We have earned a third spot in the German market with our strategy. With our current and newly acquired frequencies, we expect to maintain that position … by ourselves,’ Scheepbouwer stated. KPN is targeting a market share of between 20% and 25% in Germany over the next three to five years, up from the current 15%, but will avoid making capital investment beyond existing plans over the coming years, he added.

In the German mobile spectrum auction, which concluded last month, E-Plus was the only cellco to walk away without spectrum in the lucrative 800MHz band, suitable for the provision of Long Term Evolution (LTE). The company was able to double the amount of spectrum its holds however, and Scheepbouwer said that with two additional blocks in the 2.1GHz band, E-Plus will be able to fight competition by offering capacity rather than a new technology. Although Scheepbouwer thinks KPN is in no need to cooperate with other mobile operators after the spectrum auction, he said he would always be open to partnerships: ‘We do not need cooperation based on our current package. But we will always investigate whether things can be done cheaper with others, but at the moment this is not necessary.’

Germany, E-Plus Group, KPN