NMa: KPN May Acquire Telfort

KPN may take over Telfort. The Netherlands Competition Authority (NMa) has taken a decision on this. According to the regulator, following an investigation there is no reason to assume that competition on the market for mobile telecommunication services will be significantly restricted as a result of the acquisition. There is sufficient freedom of choice for both consumers and business customers.

NMa concludes that KPN will acquire a stronger position as a result of the acquisition. The merger, however, does not result in the emergence or strengthening of a dominant position. Four mobile telecommunication networks will remain. The three other network operators (Vodafone, T-Mobile and Orange) are amongst the large international concerns which are in a position to compete with KPN. KPN/Telfort will also acquire a strong position on the wholesale market for network access for service providers, but will be confronted by sufficient (potential) competitive pressure from other network operators.

The Netherlands is one of the few countries in Europe in which five network operators are active in the area of mobile telephony. NMa notes that this market is dynamic. Dutch consumers switch providers relatively often. In addition, there are an increasing number of service providers which make use of the networks of mobile operators to offer mobile telephony.

The regulator bases its decision on market research and information submitted by market parties. The regulator also made intensive use of the expertise of the Independent Post and Telecommunications Authority (OPTA). In OPTA's opinion submitted to NMa, OPTA states that it has no objections to the merger.