KPN acquires minority interest in FTTH operator Reggefiber

MAY 23, 2008 -- KPN and Reggefiber have agreed to bundle their respective FTTH activities in a partnership named Reggefiber FTTH. Ahead of the partnership, KPN and Reggefiber recently started a joint FTTH initiative in Almere, rolling out fiber for 70,000 households.

MAY 23, 2008 -- KPN, provider of broadband, voice, and TV services in the Netherlands, (search for KPN) and Reggefiber (search for Reggefiber) have signed an agreement through which KPN will acquire a minority interest in Reggefiber's FTTH activities.

Reggefiber was founded in 2005 and specializes in the construction and operation of fiber access networks. Since 2005, Reggefiber has developed several local fiber initiatives, including Dutch cities Deventer, Nuenen, and Hillegom.
Since the end of 2005, KPN has been implementing its all-IP strategy. Part of the implementation is its recently commenced rollout of fiber-to-the-curb (FTTC) and fiber-to-the-home (FTTH) technologies.

KPN and Reggefiber have agreed to bundle their respective FTTH activities in a partnership named Reggefiber FTTH.

Ahead of this partnership, KPN and Reggefiber recently started a joint FTTH initiative in Almere, rolling out fiber for 70,000 households. The activities in Almere will be included in the partnership, say the companies.

KPN will take a minority stake of 41% in Reggefiber FTTH, while Reggefiber wild hold 59%. Reggefiber's other activities (including Eurofiber, an operator in the business market) are not included in the partnership. KPN says it has the ability to increase its share in Reggefiber FTTH at a later stage, if Reggefiber FTTH reaches specific milestones.

FTTH provides households with direct access to fiber, delivering over 100 Mbits/sec and new services in telephony, broadband, and television. In line with both parties' operating principles, the networks operated by Reggefiber FTTH will be opened up for service providers other than KPN.

The proposed cooperation between KPN and Reggefiber is subject to approval from competition authorities.

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