KPN perceived too expensive by large enterprises

News Broadband Netherlands 9 MEI 2005
KPN perceived too expensive by large enterprises
Despite of a good appreciation of the quality of services delivered by KPN, a growing number of members of the Dutch association of major business telecommunications users (BTG) is less content with KPN’s tariffs and invoicing. These results are recently published by BTG and stem from the organisation’s annual survey among its members. The survey conveys that all competitors have better scores when it comes to price/performance. KPN scores a 6.6 on this measure while MCI (7.8), TTG (7.6) and Versatel (7.8) show significantly better figures on price/performance. Regarding customer focus TTG and Versatel take the lead, followed by KPN and MCI. However the BTG members say KPN has shown improvement on customer focus in the last years. At present 75 percent of the BTG members have incumbent KPN as it’s sole telecom provider or as one of two sources. Though the number of enterprises looking for another telecom provider has increased over the year. Last year 17 percent of the BTG members said they were in search of another provider, this year their number totals 28 percent of the member base. As a result of the growing competition, KPN’s market share is still declining. Especially in the domain of incoming international traffic KPN has lost much ground. While a few years back almost all BTG members let KPN handle their incoming international phone calls, nowadays already 16 percent is handled by the competition, of which Versatel takes the half (approx. 8 percent).

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