KPN comes up with alternative to regulating fixed network

Tuesday 27 February 2018 | 09:07 CET | News
KPN does not want any further regulation of the Dutch broadband market. In response to ACM's wish to regulate VodafoneZiggo's fixed network, the operator has submitted an alternative proposal to the regulator.

At the core of this proposal is a long term access guarantee for wholesale customers to KPN's fixed network at market rates. ACM will be able to supervise this. According to KPN, the proposal makes further regulation of the Dutch broadband market superfluous. With the proposal, the operator said it wants to prevent new regulation from creating long-term uncertainty in the Dutch market, as this could impede investment and innovation, neither of which are in the interest of Dutch consumers.

KPN wants far-reaching deregulation

KPN believes that further deregulation of the fixed broadband market -including that of its own fixed network- is easy. The Dutch market is very competitive, as can be seen by the number of providers for fixed and mobile services. Further regulation until 2021 of both KPN's fixed network and VodafoneZiggo, as outlined by ACM in its draft market decision for the regulation of unbundled access, would not be necessary.

"No one benefits from long-term uncertainty and the Netherlands cannot afford to have any impediment to investments in digital infrastructure," explained Joost Farwerck, KPN COO and management board member in a press release. "That is why we offer a solution with long-term certainty for access to our network, for all parties."

With its proposal, KPN is building on the voluntary wholesale agreements that were concluded with various customers in 2015 and which gave access to KPN's fixed network (FTTC/VDSL) based on Virtual Unbundled Local Access (VULA). KPN has also extended its VULA offer to the FTTH network. The commitment applies for a period of 7 years, considerably longer than the ACM regulation plans.

In addition to the proposed commitment, KPN will continue to offer Wholesale Broadband Access (WBA) on a commercial basis, as it currently does to about 50 service providers. KPN will further explain its position on the ACM's proposal during the consultation process that will be taking place over the coming six weeks.

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