Tele2 AB (TEL2-B.SK) said Wednesday it won a contract to provide fixed-line services to the Dutch state, marking an end to a months-long battle between the Swedish company and Dutch incumbent Royal KPN NV (>> KPN KON).
The contract is only worth an estimated total volume of EUR120 million with a minimum period of 3.5 years, but it is considered prestigious.
Tele2 will supply fixed telephony to more than 100 governmental organizations, including the seven government ministries, a large number of municipalities, district water boards, the University of Amsterdam and the Dutch High Court.
"We are very pleased with the news of the contract. The government is an important client for us. We are proud of the fact that we can provide fixed telephony to them in the coming years," Tele2's Dutch head Guenther Vogelpoel said.
In February, a Dutch commercial court ruled that KPN must retract a bid for the contract granted by the Dutch government, after a similar ruling by Dutch telecom regulator Opta.
The ruling was confirmed by a higher court this month.
Both companies had bid for the contract, but because KPN was late in informing its wholesale customers about a discount, Tele2 was unable to make a bid based on the lower KPN prices, the regulator ruled.
A KPN spokeswoman said the company has noticed the decision to award the contract.
-By Archibald Preuschat and Sven Grundberg, Dow Jones Newswires; +31 20 5715 218; firstname.lastname@example.org
Stocks mentioned in the article : KPN KON