IPTV remains a driver of broadband growth for KPN

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KPN added 56,000 IPTV subscribers in the second quarter of 2011 to reach a total of 416,000 subscribers, with the Dutch telco stating that IPTV remains one of the growth drivers of its broadband customer base.

The company has a long-established IPTV service called 'Interactieve TV', and reports that its subsidiary XS4ALL successfully launched its own IPTV service in the first half of this year, further increasing the addressable market. Another KPN brand, Telfort, will also start offering IPTV services in the third quarter of this year.

The telco also delivers a pay DTT service called 'Digitenne', which saw its customer base fall by 14,000 customers in the second quarter of this year to reach 868,000. Thus, KPN's total pay-TV customer base had reached 1.284mn by the end of the second quarter of this year, up from 1.242mn three months previously. Average revenue per user (ARPU) increased by 22% on an annual basis in the second quarter of this year to reach €11.

KPN added multi-room capabilities to its IPTV service in the second quarter of this year, and reports that it plans to make a number of other improvements later this year, such as a new user interface and more content.

The telco reports that it is also on track with its VDSL upgrades, including pair bonding, which will "significantly" increase broadband bandwidth for subscribers and enable the further commercial roll-out of multi-room HD TV. By the end of this year, KPN aims to be able to deliver guaranteed speeds of over 40 Mbps to around 40% of Dutch households.

KPN had also activated 61,000 Fibre-to-the-Home (FTTH) connections by the end of June, and reports that sales orders for FTTH connections continue to grow, although this was only partly visible in the growth rate of the installed base, due to the time lag between order intake, fibre roll-out and activation. In the fourth quarter of this year, the telco also plans to offer new higher-speed FTTH speeds of 500 Mbps upstream and downstream.

Total revenues across all operations and markets for the second quarter of this year reached €3.29bn, down 1.9% from one year previously, while net profits fell 11% by the same comparison to reach €414mn.

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