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21/03/2007 - KPN In Talks To Enter Spanish Mobile Telephony Market
Dutch telecommunications operator Royal KPN, Tuesday said it is in talks to launch services as a mobile virtual network operator, or MVNO, in Spain, which would entail leasing capacity from local network operators to offer an own-brand service.
The Dutch operator is in talks with several mobile telephony operators in Spain about its plans, KPN spokesman Stephen Hufton said, confirming a report in the Spanish newspaper Expansion.
According to the newspaper, KPN is talking to Telefonica, France Telecom's Orange brand and Vodafone. KPN's Hufton declined to comment on the names of the parties it is talking to.
KPN has said it wants to expand what it calls its multibrand strategy from the Netherlands, Belgium and Germany to other European countries, in order to offset stagnation in its traditional markets.
Countries bordering KPN's current operations are seen as possible new areas of operation for the company, but some observers see more opportunities in Italy and Spain, as competition in these countries is less fierce, because they aren't yet crowded with MVNO players.
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