KPN, Telfort Put Rollout Of 3G Networks On Hold"

AMSTERDAM -(Dow Jones)- Dutch telecommunications operators Royal KPN and Telfort have put the rollout of their third-generation mobile networks on hold, pending the outcome of a study into the possible synergies that can be reached by integrating the networks, the operators said Wednesday.

KPN bought Telfort in October 2005 and both companies reckon combining their mobile networks can save significant costs.

In June Dutch incumbent KPN agreed to pay up to EUR1.12 billion for Telfort, one of the smaller operators in the highly competitive Dutch market. Telfort will remain an independent brand under KPN's wings.

At a press conference in Amsterdam Wednesday, Telfort's new managing director, Stephanie Harmsen, said an outcome of the network integration study is expected "within several months." She declined to elaborate on the possible cost savings but said combining the networks is "very complex."

Harmsen said the network suppliers of both operators are participating in the study.

Telfort's network is being upgraded by Chinese telecom equipment-maker Huawei Technologies to work with the high-speed downlink packet access, or HSDPA, technology.

Sweden's Ericsson is rolling out KPN's third-generation network, which has a coverage of more than 70% of the Dutch population. Telfort declined to say how big its network coverage is at the moment.

-By Stefan Simons, Dow Jones Newswires; 31 20 6260770; stefan.simons@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 8th February 2006