Feeds

KPN trades fixed line for IP telephony

Goodbye to POTS

Remote control for virtualized desktops

Dutch telco KPN joins BT by turning off its public switched telephone network (PSTN) in less than three years. Eelco Blok, the CEO of KPN's fixed network, told German magazine WirtsschaftsWoche it will abandon its 100 year-old fixed line network in 2010 in favor of IP telephony.

By ripping out its legacy networks, including traditional telephone exchanges and copper wires, and replacing it with a nationwide fibre-to-the-kerb system that will deliver broadband services at 30-50 megabit speeds, KPN hope to drastically reduce costs. The group expects it can lay off 8000 workers, almost half of its fixed network work force.

In the UK BT announced similar plans to phase out its public switched telephone network (PSTN), replacing it with a multi-service internet protocol (IP) based network which will carry both voice and data services.

Plans for its ambitious All IP project were already outlined last year, but KPN didn't say it would end its traditional phone business that soon. "We need to because we face fierce competition," Blok told WirtschaftsWoche.

KPN is rapidly losing customers to Dutch cable operators which offer telephony at low prices. Sales of its fixed line business in 2006 dropped 3.4 per cent, despite adding over 500.000 VoiP customers.

KPN today reported an 8.9 per cent rise in 2006 net profit, which disappointed investors. Full year earnings are up slightly from €1.45bn to €1.5bn. Broadband continued to grow in Q4 with VoIP as the key driver. KNP's mobile telephone division, which includes E-Plus in Germany and Belgian provider Base, reported a 12 per cent rise in sales to € 6.45bn, nearly half of all KPN's revenues.

For 2007 KPN expects flat earnings and operating results. The migration to the all-IP platform and the merger of the firm’s fixed line and mobile operations by 2010 would place a drain on earnings, CEO Ad Scheepbouwer warned, but the sale of real estate and more than 4,000 job cuts would balance those investments. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.