OXFORD, United Kingdom—Mounting pressure to find a resolution to its e20 billion (US$17.7 billion) debt problem has forced the Dutch telecom company KPN to cut back on everything other than its fixed and mobile networks. The company said it had instigated actions that it claims will reduce outstanding financial commitments by e3 billion (US$2.6 billion) by the end of this year.
The company has also ceased merger negotiations with the Belgium telecom company Belgacom and is looking to sell for several hundred million euros all its other assets not associated with the fixed or mobile networks. To further save costs, KPN admitted that it is planning to cut nearly 5,000 jobs by year-end, as it withdraws from its hectic plans for international expansion and the over-ambitious idea that it could become one of Europe’s top three mobile operators.
Not part of this strategy was KPN Mobile’s announcement that it has called off the launch of its high-profile Internet Everywhere service. The company confirmed that its latest tests indicate access quality issues that make the service unacceptable for mobile consumers.
