KPN Selects IBM as Lead System Integrator to Transform Its Billing, CRM and Business Intelligence

IBM to Enable KPN's Customer-Centric Transformation to Provide Enhanced Customer Service and Accelerate Time-to-Market

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AMSTERDAM, THE NETHERLANDS - 06 Aug 2007: The Dutch telecom provider KPN has selected IBM (NYSE: IBM) as its lead System Integrator to transform its billing systems, establish a new Customer Relationship Management (CRM) solution, and transform its business intelligence over the next three years.

KPN provides Dutch consumers and consumer households with a range of fixed and mobile telephony, internet and TV services. In the highly competitive telecom market, KPN must constantly innovate its products and services as well as its business models. The impact of convergence, driven by technology developments like All-IP and Web 2.0, means that KPN needs to establish a flexible customer-centric IT infrastructure. As lead IT services provider, IBM will help KPN with this transformation for Billing, CRM and Business Intelligence.

Customer Centric Billing

For KPN's current and next generation IP-based services, IBM will establish customer-centric end-to-end billing streets, covering mediation, billing, presentment, collections and revenue assurance. "Customer Centric Billing" must support all KPN's customers for KPN and third party products or services, in any business model for batch and real-time transactions.

CRM Foundation and 360 degree customer intelligence

IBM Global Business Services will implement a new CRM suite based on Oracle eCommunications (including Siebel) that will provide KPN with a complete customer view across all products, services, channels and interactions. The CRM foundation will provide the basis for differentiating customer service at all touch points and will deliver enhanced customer insight for cross- and up-selling. The standardized yet flexible IT architecture will also help accelerate time to market for new services. The combination of CRM data analysis and enhanced business intelligence will support KPN's customer focused operations, thereby realizing KPN's business goals.

"IBM's global scale and capabilities, combined with strong Dutch presence assured us that IBM was the right party to lead this transformation. As we are one of the first customers to deploy the new Oracle eCommunications suite end-to-end, including Siebel CRM and Portal Billing. IBM's experience with other leading clients and the relationship between IBM and Oracle were of great importance to us," says Jan Muchez, CIO of KPN.

"With our extensive experience with large complex transformation programs worldwide, we are laying the foundation for KPN to be ready for the future," says Harry van Dorenmalen, General Manager IBM Belgium, Netherlands and Luxembourg. "The new CRM, billing and business intelligence framework will support the successful delivery of next generation services that KPN requires to grow revenues, while at the same time offering a superior customer experience."

The agreement between KPN and IBM was signed in the second quarter 2007.

About KPN

KPN is the leading provider of telecommunications services in the Netherlands, serving customers with wireline and wireless telephony-, internet- and TV-services. To business customers, KPN delivers voice-, internet- and data-services as well as fully-managed, outsourced ICT solutions. Both nationally and internationally, KPN provides wholesale network services to third parties, including operators and service providers. In Germany and Belgium, KPN pursues a multi-brand strategy with its mobile operations, and serves multiple customer segments in consumer as well as business markets.

At June 30, 2007, KPN served 5.8 million wireline voice subscribers, 8.8 million mobile customers, 2.5 million Internet customers and 0.3 million TV customers in the Netherlands as well as 16.1 million mobile customers in Germany and Belgium. With 27, 096 individuals (24,881 FTEs), KPN posted revenues of EUR 5.9bn, with an EBITDA of EUR 2.5bn in the first half year of 2007. KPN was incorporated in 1989 and is listed on the Amsterdam, New York, London and Frankfurt stock exchanges.

About IBM

For more information on IBM, please visit www.ibm.com

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