The Dutch competition regulator will further investigate telco KPN’s plan to take full control of Reggefiber, saying the deal could negatively affect other companies which provide telecoms or TV services via fibre optics.
The consumer and market…
The Dutch competition regulator will further investigate telco KPN’s plan to take full control of Reggefiber, saying the deal could negatively affect other companies which provide telecoms or TV services via fibre optics.
The consumer and market authority (ACM) said the deal would void the conditions imposed upon Reggefiber in 2008 for the management of its open fibre-optic network, potentially limiting other companies’ access to it. New conditions may be needed, the regulator said.
KPN currently owns 51% of Reggefiber, its fibre-to-the-home joint venture with investment firm Reggeborgh. In January, the Amsterdam-listed telco exercised an option to boost its stake to 60% for up to €161m, enabling it to take full control of Reggefiber and consolidate it within its financial statements.
The JV partners had already agreed that KPN could boost its ownership based on an established timeline and operational milestones. As such, the telco upped its stake from 41% to 51% for €99m last November. KPN has a further option to increase its stake to 100% in July 2017.
ACM noted that it is also working on an analysis of the wider Dutch telecoms sector, an exercise it undertakes every three years, which may result in requiring dominant telcos to allow others to access their networks. This analysis and the Reggefiber deal need to be looked at concurrently, the regulator said.
Founded in 2005, Reggefiber operates in 200 Dutch municipalities and claims to connect more than 1.6 million households. ACM currently requires Reggefiber to allow other telcos to access its network under transparent terms.
Vodafone’s Dutch unit said it welcomed the ACM investigation, saying the deal could make it tougher for KPN rivals to continue to provide services over Reggefiber’s network. Vodafone, among those that use the network, added that the deal may slow investment in it as KPN seeks to exploit its older copper network. Describing fibre-optics as “the network of the future”, Vodafone argued that healthy competition needs to be maintained to ensure continued investment and quality service and fair prices for consumers.
