KPN returns Telfort frequencies to the Dutch government

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Den Haag, 31-7-09

Following a recent court judgment, KPN has decided to return some of its Telfort frequencies to the Dutch government. These frequencies relate to licenses granted to Telfort in 1998 and 2000 (DCS1800 and UMTS).

In May 2009, the Dutch Radio Agency (Agentschap Telecom) imposed a penalty of EUR 5 mn on KPN, as it considered that Telfort’s licenses were not properly being used. This related to roll-out obligations of the Telfort licenses. The penalty could eventually accumulate to as much as EUR 40 mn. KPN’s appeal to suspend the order by the Radio Agency has been rejected on 13 July 2009.

KPN does not wish to run any unnecessary financial risks and has therefore requested the Dutch Ministry of Economic Affairs to withdraw some of its Telfort’s frequency licenses.

In 2008 KPN started legal proceedings against the Radio Agency. According to KPN, the Radio Agency’s obligation implies a roll-out of two networks and KPN disagrees with this requirement.

The return of the frequencies does not affect services to KPN or Telfort customers.