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Our experience shows us that more and more companies have an international presence, as continued advances in technology opens up a worldwide

marketplace for companies. As you can see in the following chart, 25% of companies in the UK with over 100 employees have international sites.

So if you are targeting medium and large companies, you will increasingly need to address not only their national needs but their international communication requirements as well.

As companies expand, and voice and data services converge, we have witnessed a dramatic increase in the roll-out of IP VPN as the main mechanism for transporting this converged traffic. VPN's are now becoming the main communication infrastructure for medium and large businesses.

63% of large customers use IP VPN

(Source Ofcom competition to supply telecoms report)

KPN Product Set and Network

As part of its extensive product portfolio, KPN provides international VPN, SDH, Wavelength and Fibre services. We offer partners truly international data services with access capabilities in over 180 countries. Access speeds and technologies vary and include Ethernet & DSL as well as traditional leased line access. There has also been an increased use of DSL technologies as a key access method. That's why KPN enables DSL access in 7 countries: UK, Germany, France, Netherlands, Italy, Belgium and Spain. The DSL capability is planned to be expanded into the Nordics in Q2 2007 and Eastern Europe and other European countries before 2008.

KPN has built strategic relationships that enable its network reach to extend beyond it's own wholly owned European fibre network. Our IP VPN services are optimised for partners, giving you the flexibility to offer either a fully managed service or your own hardware.

In addition KPN has interconnected its MPLS network with Strategic Alliance Partners who are the best of breed regional providers, enabling KPN and, in turn, our Business Partners access to a truly global VPN solution across the globe. Key national providers such as Cable and Wireless in the UK ensure a full national coverage. All of this through one contact with one contract and unified SLA's.

For customers with large data requirements, KPN is able to offer partners extensive SDH, Wavelength and Fibre capabilities.