Telefónica reconsiders KPN partnership

12 April 2013 |


Telefónica is reportedly set to re-enter discussions with KPN for a potential collaboration with the Spanish operator’s German subsidiary.

Both KPN and Telefónica are struggling with debt and a potential partnership is said to be catered towards cutting costs for the operators.

The two companies were in talks last summer for a possible full merger deal worth $20 billion, but both were unable to agree terms.

Management teams from each operator will discuss the possibility of network sharing, according to reports, although any proposals would have to wait until after KPN completes a €3 billion rights issue.

Sources have said that a network-sharing agreement is the most likely outcome of the discussions following similar deals Telefónica has made in Mexico, Brazil and the UK.

Earlier this week, it was reported that Telefónica was looking to partially list its Colombian subsidiary in a bid to reduce debts.