ACM: meaningful proposals made by KPN and Glaspoort regarding lower tariffs for fiber-optic network access

The Netherlands Authority for Consumers and Markets (ACM) has received proposals from Dutch telecom operator KPN and fiber-optic company Glaspoort for commitments on lower tariffs and improved conditions for telecom operators that wish to gain access to their fiber-optic networks. ACM considers these proposals to be a meaningful step for the telecom market, and is thus considering to declare these commitments binding. ACM aims to publish a draft decision for public consultation in mid-April. ACM will issue a final decision regarding the proposed commitments on the basis of, among other input, the opinions submitted by market participants. Pending said final decision, ACM will put on hold all investigations into access to KPN’s and Glaspoort’s networks.

In July 2021, ACM said that it had identified a risk that the tariffs and conditions that KPN uses for access to its network could make it more difficult for other telecom operators to compete with KPN, both in the short term and in the long term. ACM therefore launched a market analysis investigation, among other actions.

Since 2020, ACM has launched several investigations to assess whether it is necessary to regulate access to fixed networks, and whether or not interventions are needed under the Dutch Competition Act. In that context, ACM informed KPN and Glaspoort of the anticompetitive concerns it anticipated. KPN and Glaspoort subsequently submitted proposals for commitments, which contain improvements to their existing offers regarding access to their fiber-optic networks. Such offers are meant for telecom operators that do not have any networks of their own, which makes them dependent on access to KPN’s and Glaspoort’s networks if they wish to offer broadband, television services, and telecom services to all households in the Netherlands.

Substantially lower

“With these proposals, KPN and Glaspoort have made a meaningful step, because their proposed access tariffs are substantially lower than their current tariffs. Over the next two weeks, we will draw up a draft decision on the basis of said proposals, which we will then share with the rest of the market for consultation”, says Manon Leijten, Member of the Board of ACM. “Our main concern is that telecom operators without any networks of their own, too, will be able to make high-quality and unique offers to consumers. That will make fast broadband connections accessible for everyone at competitive prices and conditions, now and in the long term.”

The proposals in broad strokes

One of KPN’s proposals is to streamline the so-called ODF offers (where competitors only lease from KPN the final stretch of fiber-optic from street cabinets to customers) to a single national tariff, where the line tariffs for competitor telecom operators is reduced by more than 10 percent (from 18.56 euros to 16.56 euros per line). In addition, KPN proposes to lower the VULA tariffs on the fiber-optic networks that have been built since 2020 by 10 to 30 percent, depending on the customer’s selected speed and size. VULA stands for virtual unbundled local access, where access applicants gain access to KPN’s network from a more centralized location. For these services, KPN will, over the next eight years, follow a moderate CPI-based rate.

Glaspoort proposes commitments on creating offers with lower VULA tariffs than in the current offers. This commitment is also valid for a period of eight years, where the tariffs will follow a moderate CPI-based rate.