KPN proposes to reduce the rent of its fiber network for competitors – IT Pro – News

KPN wants to reduce the rent it charges competing telecom providers for the use of its fiber optic network by 10 to 30 percent. The ACM previously saw competition risks due to the high rent, but now speaks of ‘a meaningful step’.

KPN proposes to apply a national rate for its ODF offer that is 10 percent lower: from 18.56 euros to 16.56 euros per line. Odf stands for optical distribution frame and providers only rent the fiber optic part of the street cabinet to the KPN subscriber.

In addition, KPN proposes to lower the vula rates by 10 to 30 percent. The actual prices then depend, among other things, on the speed that providers choose. Vula is the abbreviation of virtual unbundled access to fibre-to-the-home for pon fiber, where a fiber is shared with multiple addresses. The competitors themselves determine the level of service to customers. The offer from KPN and Glaspoort would be valid for a period of eight years after approval.

KPN and Glaspoort have asked the Netherlands Authority for Consumers and Markets to declare the proposals binding. The competition authority is considering doing this and speaks of a meaningful step for the telecom market. Glaspoort is a joint venture for fiber optic activities of KPN and pension provider APG. ACM is yet to make a final decision and, in the meantime, is holding on to all investigations into access to the networks of KPN and Glaspoort.

The ACM started a market analysis study last year, after it saw the risk that competition with KPN could be hindered by the rates and conditions that the company applied. This concerns KPN’s offer to providers that do not have their own network and wish to use the networks of KPN and Glaspoort to provide internet, television and telephony services to a large number of customers.

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