Tuesday, 24 March 2009

Credit crisis hits KPN and Reggefiber's FTTH plans

The Dutch "Financieel Dagblad" reports that Reggefiber is finding it hard to find banks, both Dutch and foreign,  willing to loan it money for its ambitious €4 billion Fiber to the Home project. Reggefiber is operating in a joint venture with KPN.  KPN and Reggefiber are both paying 25% of the costs of the network. The other half needs to come from banks and they aren't willing. If they do loan money its in small tranches.

Reggefiber is now looking for pension funds and local governments to invest in its plans. The Dutch Ministry of Economic Affairs is looking into rules for local governments under what conditions they can invest in these plans.

The project has attracted alot of attention recently with its plans and the regulatory approval that the Dutch regulators OPTA and NMA gave to the joint venture. The whole Dutch telecommunications sector seems to be against the plan as most cable companies and alternative operators have filed objections to the regulatory approval.

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