KPN lowers fiber opting leasing rates at watchdog's insistence
KPN and Glaspoort will apply lower leasing rates for access to the fiber optic network from Friday. The Netherlands Authority for Consumers and Markets (ACM) urged the network providers to reduce their rates for other parties who want to offer internet service via their fiber optic network.
According to the watchdog, KPN and Glaspoort’s previous rates were so high that there were too few opportunities for small parties to gain access to the network. The limited competition increased the risk of consumers having to pay more. According to ACM, the lower lease rates stimulate the competition for fast internet. KPN and Glaspoort also limited how much they passed inflation on to customers.
The new rates will apply for the next eight years. ACM monitors compliance with the new conditions and rates.
KPN and Glaspoort promised early in April to lower the rates in some cases. But after several providers complained to the ACM, KPN and Glaspoort made a new proposal to lower prices in all situations.
KPN annually invests hundreds of millions of euros in constructing the fiber optic network. The telecom provider wants to provide 80 percent of all Dutch households with fiberglass by the end of 2026, together with Glaspoort. Glaspoort is a partnership between KPN and pension investor APG that realizes fiber optic connections, particularly in rural areas.
Reporting by ANP