KPN said that it is “conducting a comprehensive review of the strategic options in respect of its mobile operations in Belgium (BASE).”

In a statement, KPN said that “at this stage, however, the outcome of this strategic review is not yet clear, and further announcements will be made, if and when appropriate.”

The Associated Press reports that the deal could see the unit valued at EUR1.8 billion.

According to Wireless Intelligence figures, BASE is the country’s second largest operator, with 4.25 million subscribers – slightly ahead of France Telecom’s Mobistar, which has 4.12 million. The largest operator in Belgium is Belgacom’s Proximus, which has 5.21 million customers.

Bloomberg suggests that the business may prove attractive to private equity firms. With only three operators in the country, it is unlikely that any in-market consolidation will take place, due to competition concerns – and thereby limiting the range of potential “strategic” buyers.

It was reported that details may be sent to potential buyers early next month, should KPN decided to press ahead with a disposal.

The company is facing tough times in its home market, stating in its group review for 2011 that its performance in the Netherlands “did not meet our expectations.” The income from the sale of BASE would provide it with additional funds to bolster this unit – according to Broadband TV News, the company has just picked up regulatory clearance to acquire several fibre service operators, with other similar deals at the review stage.

KPN had not previously suggested it had any unusual plans for its Belgian operations, noting that it had seen “strong underlying growth” in this unit. Its intention was to “keep investing in mobile network roll-outs in Germany and Belgium.”

For 2011, the company reported EBITDA from the Belgian business of EUR273 million, up from EUR271 million, on revenue of EUR781 million, down from EUR785 million, after the impact of regulatory changes in this market.

Reuters said that finance house SNS Securities said in a research note that due to the solid performance, “we do not believe there is an urgent reason for KPN to sell this business.”

Late last year, KPN sold its French MVNO business, Simyo, to Bouygues Telecom.