NMa: merger license required for Dutch telecom provider KPN’s acquisition plans of four fiber-optic providers

After conducting a preliminary investigation in the notification phase, the Netherlands Competition Authority (NMa) has concluded that Dutch telecom provider KPN’s acquisition plans of four fiber-optic providers of Reggeborgh (Edutel, XMS and Concepts ICT, KickXL) require a merger license. At the same time, the NMa has given the green light to the acquisition of three of Reggefiber’s units that are active in the fiber-optic market: Lijbrandt, Glashart Media and Reggefiber Wholesale.

Acquisition of Edutel, XMS en Concepts ICT, KickXL
If KPN acquired these four fiber-optic providers, it could obtain too strong a position in various regions in which KPN and one or more of these four providers are active, the NMa says, potentially restricting consumer choice in television, internet and landline telephony services. If these companies apply for a merger license, the NMa is required to issue a decision within 13 weeks. 

Acquisition of Lijbrandt, Glashart and Reggefiber Wholesale
KPN wants full control over three units of Reggefiber Group: Lijbrandt, Glashart Media and Reggefiber Wholesale. This planned acquisition has been notified of in a separate transaction. As joint owner of Reggefiber, KPN already shares control over Lijbrandt. The NMa therefore concluded that the transition from joint control to full control over Lijbrandt will have little effect on the market’s structure. Reggefiber Wholesale offers low-quality wholesale broadband access (low–quality WBA), as does KPN. Reggefiber, however, only offers low-quality WBA when KPN is unable to do so for technical reasons. Since Reggefiber does not compete with KPN for this type of service, the NMa has cleared this part of the acquisition. In addition, regarding the acquisition of Glashart, a provider that bundles and relays broadcast signals, effective competition is not expected to be significantly impeded either, since there are enough alternatives.

The Netherlands Independent Post and Telecommunications Authority (OPTA), the industry-specific regulator of this industry, shares the NMa’s opinion in both of these transactions.