ROTTERDAM, Netherlands – In order to accelerate digitization in the Netherlands, KPN will invest a total of approximately 3.5 billion euros over the next three years. Until the end of 2025, KPN will double the number of households with super-fast internet via fiber. After that KPN will continue to renew its network by replacing copper with fiber, so that in the long term more than 80% of the Netherlands will have access to a connection at the speed of light through KPN and can benefit from the hyper-connected society. KPN announced this today at the presentation of the Accelerate to Grow strategy update.
The Netherlands is digitizing
At present, KPN offers fiber optics to the meter cupboard in one third of Dutch households. Starting next year, approximately 500,000 new lines will be rolled out annually, a record number. In three years' time, more than half of the Netherlands will have fiber from KPN in the meter cupboard, by 2025 this will be approximately 65%. Fiber offers the highest possible upload and download speed and is a more stable and reliable network that uses less energy. Along with completely new mobile network of KPN 5G, this is the most modern and powerful network where Netherlands well into the 21 th at can build century.
KPN has traditionally opened its network to competing providers to provide telecom services. KPN will continue to do so. This offers consumers and companies more freedom of choice and ensures that the capacity of the network is better utilized. In turn, this in turn supports our investments in the accelerated roll-out of fiber optics, enabling the Netherlands to stay ahead digitally and enable companies and consumers to get the best out of the hyper-connected society.
Digital & app-first
The needs and expectations of our customers are constantly increasing in this digitizing society. KPN wants to offer customers a great digital experience and give them full control over the services they purchase from KPN. KPN is therefore fully committed to improving the MijnKPN app, for example. Consumers and small business customers can easily arrange their own affairs with this, depending on the wishes of the private or business situation. In this way, the MijnKPN app supports the strength of the Hussel range, whereby customers have maximum freedom of choice and the range is continuously enriched with new options. In this way KPN wants to open up a world of content, entertainment and gaming together with digital partners. Customers can then very easily, via the MijnKPN app,
Preferred partner in digital life
Now that the vast majority of our SME customers have switched to future-proof technology, KPN will offer them a comparable experience and service as consumers. By further simplifying and digitizing customer processes, business customers will soon be able to easily put together their own digital service package from standard modules, online. Delivery is lightning fast, delivery costs are reduced and the customer experience continues to improve. In addition, business customers can choose from additional services from numerous partners in the field of security, cloud and workplace. As a one-stop shop for entrepreneurs, KPN expects that the turnover of the SME segment will stabilize by the end of 2021.
KPN has built a strong position in the Consumer and SME segment, both directly through its own brands and through the Wholesale channel. Together, these account for approximately 75% of service revenue and 90% of EBITDA AL. The number of customers consciously opting for internet via fiber is already growing. Partly as a result of this, KPN expects to achieve joint revenue growth in these segments by the end of 2021, partly through the accelerated roll-out of fiber.
Healthy financial position
In recent years, KPN has worked on a healthy financial position and profitability. This gives the financial scope to offer shareholders a dividend that will grow by 3-5% per year in the coming years. KPN is able to finance all investments and a growing dividend from its own revenues, while maintaining its healthy financial position. For example, KPN represents the interests of all its stakeholders with its Accelerate to Grow strategy.
Today’s access network architecture is under mounting pressure due to a continued surge in the number of connected devices, a proliferation of bandwidth-intensive customer applications and dramatic shifts in usage patterns related to the pandemic, such as work-from-home and e-learning.
Learn why now is the right time for cable operators to build greenfield networks or expand their existing networks with 10G PON, arming customers with high-speed symmetrical broadband. Gain a clear understanding of the drivers impacting the access network and the various approaches being considered to deliver higher speed services. Plus, find out the best practices that operators are employing as they leverage the latest in passive optical technology to future-proof their networks.
Topics to be covered include:
Node + 0 (Fiber Deep)
DOCSIS 3.1, DOCSIS 4.0 (FDX/ESD)
FTTP and 10G PON
Provisioning 10G PON within a DOCSIS B/OSS environment