KPN - Solid Q2 performance driven by Mobile

THE NETHERLANDS REVIEW – Growth in Business and mobile, continued decline in Consumer

TV growth accelerating, driven by DVB-T

The number of TV subscriptions accelerated in the second quarter with 41k net additions, an increase of 47% compared to Q2 2006, to 337k. KPN has realized this growth mainly through DVB-T by increased and improved marketing and by growing its network coverage throughout the Netherlands. KPN’s market share of the digital TV market at the end of Q2 was 14%, equivalent to 5% of the total TV market.

New TV pricing strategy

TV is a strategic pillar in KPN’s multiplay offer, with low-cost DVB-T, a proposition called ‘Digitenne’, as challenger to cable while IPTV, a proposition called ‘Interactive TV’ is positioned as a premium product with value added services such as video on demand and a larger number of optional channels. As of August 1, KPN will implement a new TV (pricing) strategy based on triple play. The DVB-T proposition will start at EUR 6.95 for the basic package, a 50% discount to cable and the IPTV proposition will start at EUR 9.95 for the basic package, available only in combination with DSL/VoIP.