KPN Pays €1.35B for 4G Spectrum
THE HAGUE -- KPN has obtained a highly attractive combination of 120MHz of frequency licenses in the Dutch spectrum auction at a total cost of EUR 1,352 million. This spectrum package guarantees continuation of existing and introduction of new services for our customers for a period of 17 years and will enable KPN to continue offering the highest quality of mobile services to its customers. KPN is convinced that the acquired licenses will generate a good return on investment.
In order to accommodate this vital strategic investment, KPN has adjusted its dividend outlook. KPN will not pay a final dividend over 2012 and the dividend for 2013 will be adjusted to EUR 0.03 per share. KPN confirms the outlook for EBITDA, Free cash flow and Capex for the full-year 2012. The purchase price will be financed from existing cash balances and drawings under KPN’s EUR 2 billion revolving credit facility.
The acquired spectrum will allow KPN to roll-out the next generation 4G LTE mobile technology across The Netherlands and maintain its strong 2G (GSM) and 3G (HSPA) positions. KPN will introduce 4G LTE services as soon as February 2013 and expects to have covered approximately 50% of the Dutch population by mid-2013 and nationwide coverage in the second half of 2014. 4G LTE services will provide our customers significantly faster speeds than currently available over a 3G network.
KPN Telecom NV (NYSE: KPN)