KPN's Costly Secrets

KPN gets fined -- again

Michelle Donegan, Contributing Editor, Light Reading

October 10, 2007

1 Min Read
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3:52 PM -- KPN just got a €2.88 million ($4.1 million) reminder that it's not a good idea to keep secrets from the regulator. Dutch regulator OPTA fined the incumbent operator for failing to report customer discounts -- again. (See OPTA Fines KPN.)

That might not seem like a lot of money for a company that made revenues of €12.1 billion ($17 billion) in 2006. But it's more than half of the €4.5 million revenues KPN made on the discounted services in question between early 2006 and mid-2007.

It's not the first time KPN has had to pay for this mistake. OPTA fined KPN €450,000 ($637,000) in January 2005, €17 million ($24 million) in November 2005, and €1.6 million ($2.3 million) in July 2007, making a grand total of €22 million ($31 million).

But does it matter? While the regulator busily investigates and enforces price transparency, I suspect KPN kept all those customers as a result of the discounted prices.

OPTA absolutely should be applauded for its efforts to ensure competition, but I think incumbents still get their way in the end.

— Michelle Donegan, European Cynical Editor, Light Reading

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About the Author

Michelle Donegan

Contributing Editor, Light Reading

Michelle Donegan is an independent technology writer who has covered the communications industry on both sides of the Pond for the past twenty years.

Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications, including Communications Week International, Total Telecom, Light Reading, Telecom Titans and more.

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