Tele2 NL is, despite its size, KPN's closest peer on the Dutch market. It owns limited passive network infrastructure, apart from a backbone, FTTO and fixed wireless assets, but it offers both fixed and mobile services to consumers, businesses and carriers. In this Research Brief we make a side-by-side comparison, based on the recent Q2 2011 results and on the 2010 annual results. We conclude that owning limited infrastructure and being much smaller than the incumbent reduces the margins at Tele2 NL. KPN revenues are 10x larger, it has 12x more RGUs and a higher mobile ARPU. Tele2 scores better on productivity, but it is almost completely absent on the business mobile market. KPN's main problem is to return to positive top-line growth. Tele2 can only improve its results by building its own mobile network.
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