Wednesday, 19 November 2008

Breaking news: KPN Reggefiber 7 billion in FTTH and regulatory approval

James Enck beat me to it: KPN and Reggefiber are going to invest 6 billion in FTTH for everybody in The Netherlands. Plus NMA/OPTA seem to be cool with the KPN/Reggefiber joint venture. That is news! For those of you who want the original article... you need to wait for the archive of Trouw, probably tomorrow. Update (13:19): The article is now available online and so is Vincent's blog posting on the subject.

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?
Oh well  this time next year I'll have FTMH (Fiber To My Home) as I'll be moving to Almere in  december and my street is scheduled for November 2009. (pictures will follow). I don't need to Bring my own Broadband

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