Sunday, April 24, 2011

KPN to Charge Extra for VoIP, Messaging and Streaming Video

KPN announced that its  "[Q1] Consumer wireless revenues lower than expected following accelerated change in customer behavior .. KPN is making significant wireless portfolio adjustments in the Netherlands to address SMS and voice substitution by moving from voice to data-centric portfolios to optimize the value per customer .. To further lower the cost base in the Netherlands, a new reduction program of 4,000 - 5,000 FTE, around 20 - 25% of the workforce in the Netherlands" - see "2011 EBITDA outlook adjusted downwards, free cash flow confirmed" - here and chart below.

KNP CEO, Eelco Blok (picture), said "To make our Dutch businesses more robust I have decided to accelerate the investments related to the new strategy. I’m confident that we are taking all necessary measures to strengthen and grow our businesses and I will share my detailed KPN Group plans during the 10 May Investor Day"

However, we do not have to wait till then. KPN's spokesperson, Steve Hufton (picture), explained to Arnoud Wokke from the Dutch site what are these "wireless portfolio adjustments" going to be: "Services such as browsing, VoIP, instant messaging and video viewing will get its own price tag, just as is the case with calling and texting .. We will allow everyone to take the services they intend to use and what they want to pay"

See "KPN: 'chatheffing' voor mobiel internet komt deze zomer - update" - here (Dutch; the above quote is a Google translation).


  1. So will this strategy work? Do consumers want to pay for specific applications?

  2. If you read Dutch, you may find tons of comments here: