Dutch telecom operator winds down Asian region operations<\/p>\n
SINGAPORE (AFP): Dutch telecommunications operator Royal KPN
\nis winding down its Asian presence, putting its investments in
\nHong Kong, Indonesia and India up for sale, a report said Monday.<\/p>\n
Withdrawing from Asia will allow the operator to divert
\nresources to defend its European turf where prices are falling
\nsharply as a result of intense competition, said Hans van
\nMoorsel, the group's chief executive for Asia.<\/p>\n
\"We will use our resources to strengthen our position in our
\nhome market and Europe. The prime target is Europe,\" he told the
\nBusiness Times.<\/p>\n
Van Moorsel said KPN, as with other telecom operators, faced
\npressure in Europe where the price for telecom services is
\nfalling as new competitors enter the market.<\/p>\n
KPN also needs funds to pay for building a third-generation
\n(3G) mobile phone network and plans to raise 5.5 billion euros
\n(US$4.73 billion) through issuing shares and convertible loan
\nstock.<\/p>\n
Since April, the company has spent $7.7 billion on 3G licenses
\nin Britain, Germany and the Netherlands, and at the same time its
\nshare price has dived from a high of 73.46 euros to around 20
\neuros.<\/p>\n
The Dutch operator has invested between $500-600 million in
\nthe Asian region, and plans to sell stakes in its Asian
\noperations, if the price is right.<\/p>\n
\"If we can get a good price, we will use the money to improve
\nour core business in Europe,\" said Van Moorsel, who was
\nunavailable for further comment Monday.<\/p>\n
The operator's biggest investment is a 17.3 percent stake in
\nIndonesian mobile operator PT Telkomsel.<\/p>\n
KPN also holds stakes in Hong Kong mobile operator People's
\nTelephone Company and an Indian Internet venture with Wipro Ltd.<\/p>\n
It was in the process of applying for a facilities-based
\ntelecoms license in Singapore when the decision was made to pull
\nout of Asia, the report said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dutch-telecom-operator-winds-down-asian-region-operations-1447893297",
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