O2 sells Dutch operations

O2 Netherlands, previously known as Telfort Mobiel, was founded in September 1996 as a 50:50 joint venture between British Telecom and Nederlandse Spoorwegen, the Dutch railway company.

British Telecom purchased the remaining 50pc in July 2000 for £1.2 billion.

Today, mm02 sold O2 Netherlands to a Dutch private equity group for £17 million. A £1.4 billion provision for the losses incurred by the unit will be treated as an exceptional item in its accounts for the year to March 31.

The decision to sell O2 Netherlands to a Dutch private equity firm, Greenfield Capital Partners, followed a review of the "highly competitive" Dutch mobile phone market, which is contested by five firms, mmO2 said.