KPN to quit Telkomsel

KPN to quit Telkomsel

AMSTERDAM (Dow Jones): Dutch telecommunications company Royal KPN NV (KPN) said Monday that it plans to offer a so-called free- access Internet service, and that it would consider selling its stake in PT Telkomsel, its Indonesian operations.

During a press conference held after the company posted its first-half results, Chief Financial Officer Cees Griffioen said the company plans to offer residential customers Internet access for only the price of a local phone call.

Griffioen also said the company would consider selling its Indonesian operations, which had an operating income of 10 guilder million in the first half of 1999, up from a 13 million guilder loss in the first half of 1998.

Griffioen said that even though business is going unexpectedly well in Indonesia, the activities no longer fit with KPN's international strategy or core operations.

"It's become something of a stand-alone business," Griffioen said. "If someone offered us a good price, we'd seriously consider selling it."