KPN to Decide on ‘Difficult’ French Business Within 6 Months

Royal KPN NV (KPN), the largest Dutch phone company, will decide in the next six months whether to keep its French business as its wireless operations in the country face rising competition. The French market is “difficult,” Thorsten Dirks, who heads the company’s international mobile-phone operations, said at a press event in Dusseldorf on Nov. 30. KPN, based in The Hague, has to decide whether to strengthen its business in France or dispose of it, he said. Competition will increase in France next year with the entry of a fourth mobile operator, Iliad SA. UGG Classic Tall Boots The company, founded by billionaire Xavier Niel, has pledged to drive down prices in the country, where France Telecom SA (FTE)’s Orange, Vivendi SA’s SFR unit and Bouygues Telecom SA dominate the market. KPN operates the Simyo brand as a so-called mobile virtual network operator, or MVNO, using the networks of Bouygues and Orange. (EN) “Selling their MVNO in France, but also in Spain, would be consistent” with KPN’s strategy of focusing on its Ortel brand, said Victor Bareno, an analyst at SNS Securities in Amsterdam who has a “hold” recommendation on KPN shares. Ortel Mobile provides prepaid mobile services in several European countries. KPN shares rose as much as 1.8 percent to 9.19 euros and traded at 9.18 euros as of 11:08 a.m. in Amsterdam. The stock has lost 16 percent this year, cutting the company’s market value to 13.6 billion euros.