KPN/Reggefiber JV takes stake in Amsterdam network

Feb. 6, 2009
FEBRUARY 6, 2009 -- KPN this week announced that it will participate in the fiber network roll-out in Amsterdam through its Reggefiber joint venture. The Reggefiber joint venture now takes a majority stake in Glasvezelnet Amsterdam (GNA), an existing joint venture with the municipality of Amsterdam and several housing corporations.

FEBRUARY 6, 2009 -- KPN (search for KPN) this week announced that it will participate in the fiber network roll-out in Amsterdam through its Reggefiber (search for Reggefiber) joint venture. The Reggefiber joint venture now takes a majority stake in Glasvezelnet Amsterdam (GNA), an existing joint venture with the municipality of Amsterdam and several housing corporations. The joint venture does not require additional cash contributions from KPN for increasing its stake.

In the coming years, GNA will be responsible for a further and gradual fiber network rollout based on fiber-to-the-home (FTTH). During the first stage, it intends to realize some 100,000 homes passed with FTTH over the next few years. KPN intends to offer services on this network.

For KPN, participation in GNA via the Reggefiber joint venture is the next step following the establishment of a joint venture with fiber construction company Reggefiber in 2008. This joint venture is focused on the roll-out of FTTH networks in the Netherlands, and the company will roll out the Amsterdam network as well. Just like Reggefiber's other fiber networks, the network in Amsterdam will be opened up to KPN and other service providers.

KPN is currently involved in pilots in ten cities for fiber, five of them with FTTH. In the second half of 2009, the results of the pilots will be used to determine the speed and direction of a possible further fiber rollout. After delivering the first 100,000 connections in Amsterdam, it will be assessed if and how a further rollout in Amsterdam would be appropriate.

The proposed joint venture is subject to approval from the competition authorities.

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