KPN - Solid third quarter results

At 30 September 2008, KPN (Amsterdam:KPN) served over 37 million customers, of which 29.8 million in wireless services, 4.0 million in wireline voice, 2.5 million in broadband Internet and 0.7 million in TV.

Further growth in TV

TV continues to grow and delivers an increasing contribution to revenues. KPN’s estimated share in the digital TV market is 21% at the end of September 2008, with 64k new customers added in Q3. KPN TV customers totaled 700k (+69% y-on-y). As from October, the price for Digitenne was increased from EUR 6.95 to EUR 7.50 a month. KPN continues to expand its DVB-T network and added circa 550k households to the coverage area since 30 June 2008.

                             1Q07  2Q07  3Q07  4Q07  1Q08  2Q08  3Q08
                             ----  ----  ----  ----  ----  ----  ----
KPN TV subscribers (x1,000)   296   337   414   497   553   636   700
Market share (%)               13    14    17    18    19    20    21

All-IP status update

KPN is making substantial progress towards the roll-out of a fiber based access network. The IP-based services platforms for VoIP and IPTV are fully operational, stable and scalable (VoIP over 1 million customers, IPTV currently over 30,000 subscribers). The backbone is now entirely fiber based, generating an increase in transmission capacity at lower costs.

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