KPN Suffers VOIP Hiccup

08 May 2007

KPN's strategy is to add value to its broadband service to retain as
many of those customers as possible. It currently has 2.23 million DSL
customers, giving it a 41 percent share of the retail broadband market,
with 650,000 of those broadband customers (about 30 percent) using the
VOIP service.

KPN admitted to VOIP service problems caused by a high level of demand as it reported its first quarter results today.

The Dutch incumbent has been promoting its VOIP service, called
InternetPlusBellen, throughout the Netherlands since February 2006 as
it competes against the IP telephony offers from its cable operator
rivals and continues its migration to an all IP network. 

But the carrier, which still has more than 4 million fixed line
customers in its domestic market, wasn't prepared for the massive
uptake it experienced in late 2006, when it added 247,000 new VOIP
subscribers in the fourth quarter. That level of uptake, the operator
admitted today, "stretched KPN beyond its delivery capabilities
resulting in serious quality issues and congestion in KPN call

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