Dutch govt wants first say in any acquisition of KPN

News General Netherlands 11 JUN 2014
Dutch govt wants first say in any acquisition of KPN

The Dutch government has issued a new bill aimed at better protecting the national telecom infrastructure. Any company seeking to control either KPN or its networks must first obtain a certificate of no objection from the ministry of economic affairs. The bill is the brainchild of minister for economic affairs Henk Kamp, who also put forth the idea on behalf of minister for security and justice Ivo Opstelten.

The government considered partially reversing the privatisation of KPN as an alternative instrument, but then rejected the idea. The same went for getting a golden share. The government felt it was too expensive and may not be in line with EU rules. Kamp said he wants to bring a final bill to Parliament in the spring of 2015, after consultation with bodies such as the European Commission.

Kamp added that the current Telecommunications Act was inadequate to address the issues relevant to a potential takeover of KPN. A penalty imposed by ACM would have little effect on a party putting its business interests in second place.

The proposed bill follows a lengthy political debate that began when America Movil made its bid for KPN last year. Kamp said in September that the government would want to get involved should there  be a bid for KPN by a foreign company. Any such acquisition would raise a number of questions related to public interests and the continuity and quality of vital ICT infrastructure managed by KPN, including services provided to the government and of national security.

In a letter to the Lower House of Parliament, Kamp outlined various reasons why the government would not wish KPN to be taken over, citing security risks and risks of a geopolitical nature, such as a foreign government exercising  pressure on the Dutch government through its control of the KPN. The minister also talked about some of the vital services provided by KPN, such as C2000, emergency communications facility (NCV) and communication services for national defense, including the Netherlands Armed Forces Integrated Network (Nafin).

 

Related Articles