KPN to split up units

JAKARTA (JP): Koninklijke PTT Nederland/Royal PTT Nederland (KPN) will separate its two major units, PTT Telecom and PTT Post, because the firms had expanded significantly in different directions.

KPN's spokeswoman, Mieke Plaschek, said yesterday the split would be completed by the first quarter of 1998.

"The separation will not, however, affect PTT Telecom's ownership in PT Telkomsel," she said.

In 1996, PTT Telecom acquired 17.28 percent of Telkomsel, which operates the Global System for Mobile communications in Indonesia.

Plaschek, who was in Indonesia to train state-owned PT Telkom employees, said KPN had to split its units because PTT Telecom focussed on capital and technology intensive operations, while PTT Post emphasized labor intensive operations.

She said PTT Telecom had 30,000 employees and PTT Post 100,000 employees. (icn)