Tele2-Versatel signs distribution deal with KPN

11 Sep 2006

Dutch alternative telecoms operator Tele2-Versatel has signed a distribution agreement for digital TV services with the incumbent KPN, allowing the altnet to market own-brand TV services over the former monopoly’s Digitenne network. The arrangement includes rights to allow KPN’s interactive television network Mine for the distribution of football pay-TV channels. No financial details were disclosed.

Last month Tele2 and Versatel agreed terms to merge their Dutch and Belgian operations. Under the deal, Versatel will purchase Tele2’s Dutch and Belgian businesses, issuing new shares to finance the deal. At the time Versatel said that it might have to raise additional capital to complete its business plan, but has yet to decide whether this would take the form of a debt or equity issue. The two companies have been working to complete their merger for nearly a year, having fallen foul of minority shareholders who worked to prevent the tie-up.

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