KPN shares fall after 4G deal prompts dividend cut

Dec 17, 2012

Shares in Dutch telecommunications company Royal KPN NV are falling sharply Monday over fears the company has once again paid too much in a 4G mobile auction.

The company said after the close of trading on Friday it had paid €1.35 billion ($1.8 billion) to obtain frequencies for fourth generation high-speed mobile Internet services through 2030. KPN said it would slash in 2012 and 2013 as a result. By mid-morning shares were down 13 percent at €4.01.

Back in 2000, the company spent more than €10 billion on 3G frequencies in the Netherlands, Germany and Britain. It wound up having to issue new shares with state support to avoid . Shares lost almost all their value, and the frequencies were later rented at lower prices.

Explore further: Can Etsy keep its folksy brand and make shareholders money?

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Netherlands raises $5 billion in frequency auction

Dec 14, 2012

(AP)—The Dutch government says it has raised €3.8 billion ($5 billion) in an auction of its 4G high speed mobile Internet frequencies. Winning bids were submitted by Royal KPN NV, Vodafone PLC, Deutsche Telekom AG and ...

Czechs launch first auction of 4G mobile frequencies

Jul 13, 2012

The Czech telecommunications watchdog CTU has launched its first auction of fourth generation mobile telephony frequencies, with a fourth mobile operator likely to enter the market, its website said on Friday.

Czechs to auction 4G mobile frequencies

Mar 19, 2012

Czech telecommunications regulators (CTU) announced Monday their intention to auction 4G mobile telephony frequencies and that a fourth mobile operator could enter the Czech market.

AT&T: T-Mobile 3G phones will need to be replaced

Mar 21, 2011

AT&T Inc. said Monday that if its deal to buy T-Mobile USA goes through, T-Mobile subscribers with "3G" phones will need to replace those to keep their wireless broadband service working. But there will be ...

Kodak tries to quash bankruptcy fears; shares jump

Oct 03, 2011

(AP) -- Eastman Kodak Co. shares soared more than 57 percent Monday after the photo company tried to quash investor fears of a bankruptcy, which had caused shares to lose more than half their value on Friday.

Recommended for you

Car industry welcomes Google, Apple but battles loom

12 hours ago

It could be the battle of the titans. Auto giants at the Geneva Motor Show say they welcome the potential move of Silicon Valley players into their sector but experts warn of major disruptions.

Woman in Silicon Valley sex discrimination suit to testify

13 hours ago

The woman at the center of a sex discrimination lawsuit against one of Silicon Valley's most prestigious venture capital firms is set to take the stand in a case that has focused attention on the treatment of women in the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.