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."