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Further investigation needed into planned acquisition of Reggefiber by KPN

The Netherlands Authority for Consumers and Markets (ACM) will launch a more detailed investigation into the planned acquisition of Dutch fiber-optic company Reggefiber by Dutch telecom provider KPN. In 2008, ACM imposed conditions on Reggefiber for the management of its fiber-optic cable network. The planned acquisition would produce a shift in the balance of power in Reggefiber, thereby rendering the 2008 conditions inapplicable. This may lead to restrictions for other companies on the use of KPN’s fiber-optic cable network. That is why further investigation is needed to see whether new conditions ought to be imposed.

With the acquisition, KPN will acquire full control over Reggefiber’s fiber-optic network. This may have consequences for other companies that offer internet services, telecom services and television services over the fiber-optic network. ACM will investigate whether other companies that wish to use KPN’s fiber-optic network could be excluded by KPN or whether KPN might be in a position to impose restrictive conditions.

In addition to the investigation into the acquisition of Reggefiber, ACM is currently working on a market analysis of the telecom sector. ACM conducts this analysis every three years. A possible outcome of the market analysis is that ACM mandates dominant telecom providers to offer others access to their networks. The outcome of this analysis is also relevant for the investigation into the acquisition of Reggefiber. Unsurprisingly, the market analysis and the investigation into the acquisition into Reggefiber are thus currently progressing at the same pace.

Reggefiber is a joint venture of Reggeborgh and KPN. It lays and manages fiber-optic cables in the Netherlands. Approximately 1.7 million households are connected to Reggefiber’s fiber-optic cables. KPN currently owns 51 percent of Reggefiber’s shares, and its stake will increase to 60 percent after the acquisition, thereby acquiring full control over the company.