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Euronews: KPN Takes Control of FTTH Venture

Ray Le Maistre

Also in today's regional news roundup: Mobile tower integration in Spain; M&A talk swirls around Vodafone; Vdio hits stop button; and more.

  • KPN Telecom NV (NYSE: KPN) has taken control of FTTH (fiber-to-the-home) operator Reggefiber BV by increasing its stake to 60%, the Dutch incumbent announced Thursday. KPN already held a 51% stake, but has now exercised an option to increase that holding by a further 9%, a move that will cost it up to €161 million (US$220 million). The move is in line with the FTTH strategy outlined by KPN in 2011. (See KPN Focuses on FTTH.)

  • Vodafone Group plc (NYSE: VOD) is reported to be in talks about the potential acquisition of Indian operator Tata Teleservices Ltd. , a move that would make Vodafone India the largest mobile player in the market. For more details, see this Light Reading India story. Vodafone, itself the subject of M&A speculation, is already a major player in India, though it has had its fair share of issues with the country's authorities over the years. (See Euronews: Vodafone Shares up on AT&T Takeover Rumor and Vodafone Seeks Arbitration in India Tax Row.)

  • Spanish passive infrastructure specialist Abertis Telecom, through its Abertis Tower operation, has completed the first stage of a mobile site integration project that involves the purchase of 1,741 towers from Telefónica SA (NYSE: TEF) and Yoigo for €171 million ($233 million). "After this transaction, equipment owned by Telefonica and Yoigo will be co-hosted in these infrastructures. Both operators will be clients of this set of towers in the next years, and said towers will be available to any operator that may be interested," notes Abertis in this document.

  • OTT video hopeful Vdio, which was set up in late 2011 by one of Skype's founders, Janus Friis, ceased operations on December 27, 2013. The company noted that it was "not able to deliver the differentiated customer experience we had hoped for." (Se Skype Founders to Target Netflix, LoveFilm.)

  • Telefónica is reportedly working on a deal with its main Brazilian mobile rivals to acquire TIM Brasil and then split it up, according to this Reuters report.

  • Ethernet and network capacity service provider euNetworks Group Ltd. has appointed for Level 3 Communications Inc. (Nasdaq: LVLT) executive Neil Hobbs to its board of directors. See this announcement for more details.

    — Ray Le Maistre, Editor-in-Chief, Light Reading

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    User Rank: Blogger
    1/4/2014 | 3:20:16 PM
    Still so much fragmentation in the OTT video market, and Netflix and the bigger ones continue to separate themselves further from the smaller firms.
    User Rank: Blogger
    1/3/2014 | 8:27:44 AM
    Sticking with its strategy
    KPN is sticking with its fiber-based fixed broadband push, unlike other European incumbents that are investing more in its copper plant in the meantime. Competition is intense from cable and specilist ISPs in the Dutch market, so that is no doubt a driver.
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