KPN may sell German subsidiary E-Plus

The European Commission has permitted Dutch telecom company KPN to sell its German subsidiary E-Plus to the Spanish Telefónica, which plans to merge E-Plus with another German subsidiary, O2.

Telefónica will have to comply with several demands from the European Commission because the two subsidiary companies may demand a large corner of the market. One of the demands is that the company would have to sell 30 percent of tis capacity for mobile communication to providers that do not have their own network.

The company will also have to sell several frequencies so that there is enough space for another provider to set up a mobile network.

Telefónica will also have to set up its 4G network for providers without their own network.

KPN hinted at the sale of E-Plus last year, and is going to receive around €8.6 billion for it. The Dutch telecom company is making the move to concentrate on its core markets in The Netherlands and Belgium. The sale will allow the company to improve its financial position.