Telco returns to the budget brand market after dropping Telfort three years ago
KPN has announced it will take over the Dutch activities of budget MVNO Youfone for around €200m. The MVNO is already running on KPN’s network and boasts more than 540k fixed and mobile customers in the Netherlands. Around 90% of Youfone’s customers are mobile and the rest take fixed services.
The deal is subject to customary closing conditions, including competition authority approval. Dutch MVNOs reported hold between 10-15% of the mobile market.
The Youfone team will continue to operate independently within KPN, which described trhe MVNO as a “fast-growing and challenging” operator. KPN plans to run the brand alongside existing brands XS4ALL, Solcon and the youth-focused Simyo. The telco said it wanted to continue: “the efficient operating model that Youfone has been able to successfully implement.”
“With this acquisition, KPN materially strengthens its position in the mobile and broadband markets, especially in the faster-growing no-frills segments,” the carrier said in a statement.
The MVNO deal only covers Youfone’s Dutch activities. In 2021, Youfone entered the Belgian MVNO market, offering fixed and mobile services on Proximus’s network.
It’s been a busy acquisition week for the telco. Earlier this week it announced it was acquiring fibre broadband infrastructure built by Dutch investment firm Primevest Capital Partners for an undisclosed sum. This network will expand KPN’s footprint by 127,000 homes in The Hague, Rotterdam and Eindhoven.