Some interesting questions:
- KPN announced this morning that they will also be doing a stock buy back worth 1 billion. Where are they getting the money?
- What will be the effect on competitive networks, like BBNed. Will they have a place in the Dutch landscape? The answer is probably yes. Reggefiber is thinking of fiber as a real estate play. (Light/beer, whatever you want to push through the fiber is your problem). Regulators (in their right mind) should see it the same. So mandated unbundling and access for BBNed/Tele2 should be the norm.
- What will be the effect on Cable? UPC is probably in better shape than Ziggo. Liberty/UPC got a free network when they converted the bonds to stock when the bubble burst. Ziggo paid €1560 per sub and is in much more difficulty when it comes to being competitive in the market.
- Will this prove to be a pre-emptive strike by KPN/Reggefiber to create Fear, Uncertainty and Doubt in the market? Whether or not it was aimed to discourage others to invest in the market, the effect will be the same. Investments in competitive networks are already more difficult ever since KPN's All-IP plans. This will have the same chilling effect. All KPN needs to do now is work 2 years tirelessly and then nobody will invest in new networks anymore.
- Is KPN's deal with Reggefiber exclusive? Could we see other financiers step into this market? Pension funds should be interested?