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KPN fixed line recovery - Venture Insights

Report Overview

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KPN fixed line recovery

PublisherEnders Analysis.
Publish Date February 10, 2009
Sector Fixed Line (Internet and Voice).

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KPN noticeably improved the performance of its domestic fixed line business in its full-year 2008 results, with revenues close to stabilising, and positive EBITDA growth of 1% indicating a turning point in the profitability of the Dutch division.

Dutch broadband penetration is close to saturation, so KPN’s revenue growth potential will shift from broadband to adoption of next generation access services and subscriber upgrades to higher bandwidth and digital television.

KPN, however, is taking a cautious path on NGA. FTTH deployment will depend on local conditions, notably availability of financing from landlords and municipalities, household density and average revenues. FTTC/VDSL is for areas where returns will be lower. Mass market’ deployment will be decided in H2 2009 depending on consumer adoption.