Always-on broadband plan for Netherlandsellipse but KPNQwest struggles

Netherlands service provider KPN has ordered an MPLS VPN-powered network service for the Internet from Cisco Systems.

The VPN will help KPN provide a flexible, always-on broadband access service for Dutch enterprises. The Cisco 10000 series Internet Routers will aggregate broadband access technologies from leased lines and DSL through to dial up and GPRS.

Under the name Epacity, KPN is gradually launching the IP-VPN services with MPLS technology that help provide users and application and internet service providers with reliable connectivity.

Epacity is also integrated with KPMG Consulting, Inc's Configure to Fit business support systems/operations support system. This is customised for KPN's applications and specific business processes to provide web-enabled, business management IP-VPN solutions.

"MPLS technology solves the scalability and manageability problem of multiple, large-scale IP-VPNs and helps us to offer broadband services complete with Quality of Service characteristics", said Huub Zabel, manager, Epacity Solutions at KPN.

"Enterprises are increasingly facing the dual challenge of investing in their network infrastructure whilst needing to focus on their core business," said Edzard Overbeek, general manager, Cisco Systems the Netherlands.

• In debt by Euro2.3bn after its shares lost 95% of their value over the last year, KPNQwest NV says its liquidity situation has deteriorated further and that it is exploring other means of recapitalising.

At the end of April Qwest Communications International Inc - which owns 40% of KPNQwest - said it was writing down its investment from about USD1.3bn to USD706m and that, after completing a USD41m purchase of KPN's network capacity, it felt no further obligation to fund it.

KPNQwest is considering raising funds from its main shareholders and third parties, finding a strategic buyer or selling certain non-strategic assets to third parties.