Dutch incumbant telco KPN has announced plans to build an FTTH network to all 400,000 homes in Amsterdam within the next 5 years at cost of approximately 300-400 million. In a deal with Reggefiber (a network construction specialist) KPN will take a share in the company who has constructed several FTTH community projects and build on these as they deploy their network.

In a move which has suprised many, KPN's has decided to open up their network to competitors. KPN CFO Marcel Smits said the company believed a tiered model - with one company owning the network, but multiple firms providing services over the network - would work well. "We believe in open models, because that seems to be the best way of making sure we get full utilisation."

This is an interesting development in the context of incumbents; throughout the world they are less than enthusiastic about opeing up their next generation networks to competitors. Telstra, Verizon, NTT, France Telecom, Deutsche Telekom all object to the open access model. It moves KPN closer towards a civil utility-type of model, with many providers offering services over the network, owned by a single operator.



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