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The Dutch telecom provider KPN has been given the green light by the regulator ACM to acquire virtual provider Youfone. Despite this acquisition, KPN will allow Youfone to operate under its own brand for the foreseeable future, with Youfone currently boasting 580,000 customers.
ACM believes that the acquisition will not stifle competition in the mobile market. In fact, the mobile provider landscape is not expected to undergo any significant changes as a result. According to ACM, research indicates that there are substantial barriers preventing Mobile Virtual Network Operators (MVNOs) from switching providers, with no major shifts occurring in the past decade. Nonetheless, the mere threat of MVNOs moving to a different network, such as Odido or VodafoneZiggo, allows them to negotiate better terms with KPN.
Once the acquisition is finalized, KPN plans to maintain the Youfone brand without making any alterations. KPN stated, "The goal for Youfone is to continue growing in the coming years by following the efficient business model that has proven successful." The Youfone organization will remain independent within KPN to ensure that current and future customers receive the same level of service they are accustomed to.
Last year, both companies announced their agreement for the acquisition, with ACM initiating an investigation in September. KPN is set to pay around 200 million euros for Youfone, with the aim of solidifying its market position.
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