KPN may take over Youfone and will retain the brand name for the time being

The Dutch provider KPN may take over virtual provider Youfone, regulator ACM has ruled. KPN is allowing Youfone to exist as a separate brand for the time being. Youfone has 580,000 customers.

There is no reason to assume that competition in the mobile market will become less due to this acquisition, ACM believes. Moreover, the market for mobile providers is not changing significantly either. “The research shows that there are significant switching barriers for MVNOs and that they have not switched in the past 10 years. Nevertheless, it appears that they can effectively threaten to switch to another network, such as Odido or VodafoneZiggo. This threat ensures that MVNOs can negotiate better conditions in negotiations with KPN.”

KPN will leave the Youfone brand untouched once the takeover is completed. “The commitment for Youfone is to achieve further growth in the coming years by continuing the efficient business model that Youfone has successfully established,” says KPN. “The Youfone organization will continue to operate independently within KPN to ensure that current and future Youfone customers are served in the way they are familiar with.” Both companies announced the acquisition in June last year. In September, ACM said it would investigate the takeover. KPN will pay approximately 200 million euros for Youfone. The intention is to strengthen one's own position.