KPN Keeps Taking Share From VodafoneZiggo in Large Urban Areas; Maintaining EUR 3.20 Fair Value

KPN is the incumbent telecom operator in the Netherlands, operating in the fixed-line and mobile markets. It has maintained a stable market share during the past decade in broadband, where it shares leadership with peer VodafoneZiggo (40% each). We believe the Dutch broadband market to be a rational oligopoly where both players prefer not to engage in aggressive market share shifts but rather maintain stable positions, executing slight price increases each year. The mobile market, where KPN has a 20% share, has three major operators (KPN, VodafoneZiggo, and Odido, previously T-Mobile Netherlands), which allows for overall market stability.