Dutch KPN to open fibre network to competitors

By Niclas Mika

AMSTERDAM, July 23 (Reuters) - Dutch telecoms group KPN (KPN.AS) will open its network to competitors to boost utilisation when it hooks up homes with high-speed fibre-optic access, its chief financial officer said on Wednesday.

KPN CFO Marcel Smits said the company believed a tiered model -- with one company owning the fibre-optic cable in the ground, but multiple firms providing services over that cable -- would work well.

"We believe in open models, because that seems to be the best way of making sure we get full utilisation," Smits said.

KPN's stance is markedly different from other carriers such as France Telecom (FTE.PA) and Deutsche Telekom (DTEGn.DE), which want to keep their upgraded networks to themselves.

KPN, the former Dutch telecoms monopoly, is setting up a joint venture with privately-held Reggefiber that will roll out fibre to homes in selected Dutch towns and own the cable in the ground. KPN will act as a service provider on the network, using its brand to sell high-speed Internet access and other services, and get an opportunity to test the business case.

Smits said the joint venture, in which KPN will hold a minority stake of 41 percent, means KPN does not have to bear the full cost of the rollout and will share the downside risks.

While European countries are mostly on par with regards to mobile phone networks, there are large differences on how carriers have approached fibre.

In France, several operators are building fibre networks all the way into homes, while many operators elsewhere for now only plan lay fibre to the street.