Tele2's portfolio reshuffling seems to have ended, focusing on 7 markets. Many western Eurpopean markets were exited and the weight of the Dutch operations have grown to 15 percent in terms of revenue contribution to the Tele2 Group. Also, Tele2 Netherlands has matured in terms of margins and cashflow generation. Margins have gone up, and cashflow contribution reached 15 percent of group cashflow, the same level as the revenue contribution. In other words, Tele2 NL looks mature enough to be added to the the Tele2 core markets. Further, Tele2 Netherlands is looking to be a mobile network operator, instead of a MVNO. Such a move would be completely in line with the Group's strategy. Finally, the unit could become a strong DSL contender by acquiring ISP's. KPN hoovered up a large number of them and seems to have reached its limits for growth by acquisition from a regulatory point of view. Now Tele2 could step in.
