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KPN scoops up Tiscali's Dutch biz for €255m

Pay to triple-play

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Tiscali has sold its Netherlands subsidiary to KPN for €255m.

KPN gains 200,000 broadband and 126,000 dial-up subscribers, taking its ISP market share in the Netherlands to 45 per cent, Ovum analyst Dan Bieler estimates. Perhaps surprisingly, competition authorities have nodded through the deal.

Bieler says the acquisition will help KPN build its triple play (bundling VoIP, broadband and cable television/video-on-demand) service.

"At an implied value of about €630 per subscriber (or an ARPU of €53)", he notes: "KPN has plans that go beyond the provision of plain vanilla Internet access - and beyond synergies from the integration of Tiscali's infrastructure. Its own TV offering had attracted 230,000 subscribers by Q2 2006 and its IPTV offering Mine is gaining momentum."

Tiscali said its Dutch operation was one of the most successful in the group, but the disposal will enable it to focus on "markets with the highest potential for value creation". ®

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