KPN Returns Telfort Frequencies to the Dutch Government

Netherlands based KPN is to return some of its 3G radio spectrum to the telecoms regulator following a court ruling earlier this year. The court ruled that KPN subsidiary, Telfort had not made full use of its 3G radio spectrum and imposed an ongoing series of fines until the spectrum was used. Handing the spectrum back to the regulator has capped the fines.

In May 2009, the Dutch Radio Agency (Agentschap Telecom) imposed a penalty of EUR 5 million on KPN, as it considered that Telfort's licenses were not properly being used. This related to roll-out obligations of the Telfort licenses. The penalty could eventually accumulate to as much as EUR 40 million. KPN's appeal to suspend the order by the Radio Agency has been rejected on 13 July 2009.

KPN said that it does not wish to run any unnecessary financial risks and has therefore requested the Dutch Ministry of Economic Affairs to withdraw some of its Telfort's frequency licenses.

In 2008 KPN started legal proceedings against the Radio Agency. According to KPN, the Radio Agency's obligation implies a roll-out of two networks and KPN disagrees with this requirement.

The return of the frequencies does not affect services to KPN or Telfort customers.

Posted to the site on 2nd August 2009