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Tele 2 looking at cable; KPN at Tele 2

November 21, 2011 12.11 Europe/London By Robert Briel

Tele2 CFO Lars Nilsson said an entry to the Dutch mobile market through a partner, such as a cable operator, “is definitely an option.” 

He made the remark while speaking at the Morgan Stanley TMT Conference in Barcelona.

Liberty Global’s UPC and unlisted Ziggo share the Dutch cable market, successfully competing with KPN with broadband access, telephony and digital TV products.

The two cablers recently won an LTE licence for mobile broadband and during the upcoming Dutch mobile spectrum auction Tele2 is considering participating, according to Torstensson.

Such cooperation would be a remarkable one, as Tele 2 has unsuccessfully tried to gain access to cable as a third-party reseller of analogue television services.

At the same conference KPN CEO Eelco Blok said Tele2 would be “an ideal target” for KPN, according to a report in Total Telecom. However, a takeover of Tele2’s Dutch assets could face regulatory hurdles.

Broadband TV Views. KPN has set its sights on takeovers in the Netherlands in response to its declining market share for fixed line telephony and broadband services. The incumbent is hurting badly from competition from the cable operators, who successfully deploy their triple play strategy.

KPN’s answer has been to accelerate its IPTV roll-out, and at the same time acquire smaller operators. Just recently, it also announced that the company is taking full control of the Reggefiber FTTH networks and service companies.

A cooperation between the two largest cable operators, UPC and Ziggo, with Tele 2 would definitely make sense. The two cablers already have a JV in place with an LTE licence, where Tele 2 could come aboard.

The result would be a national footprint for a very strong quintet play offer consisting of digital TV, fixed and mobile telephony as well as fixed and mobile broadband access. No wonder KPN is now looking at Tele 2 as a potential takeover target.

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Filed Under: Finance, Newsline, Top Story Edited: 7 September 2021 12:40

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About Robert Briel

Arnhem-based Robert covers the Benelux, France, Germany, Austria and Switzerland as well as IPTV, web TV, connected TV and OTT. Email Robert at rbriel@broadbandtvnews.com.

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