THE HAGUE, The Netherlands -- KPN announces three steps to strengthen its commitment to Fiber-to-the-Home (“FttH”), which forms an integral part of its ‘Strengthen - Simplify - Grow’ strategy. As a first and second step, KPN intends to acquire four fiber service providers currently owned by Reggefiber and Reggeborgh and also intends to acquire Reggefiber’s wholesale operator. As a third step, KPN announces an amendment to the Reggefiber joint-venture agreement with Reggeborgh (“joint-venture agreement”) designed to provide a clear roadmap toward ultimate control for KPN.

These steps form an important part of KPN’s strategy to improve the trend in its broadband market share. KPN is targeting >45% broadband market share by 2015. This strategy is based on two important pillars: i) improving and differentiating the TV and broadband propositions and ii) expanding the addressable market with a hybrid VDSL and FttH network strategy.

KPN’s wireline innovation roadmap geared towards differentiated propositions is currently running ahead of schedule with a number of important propositions successfully launched. This includes the roll-out of multi-room IPTV as well as IPTV Online with functionalities on laptop and iPad. To expand the addressable market, by offering increased bandwidth, KPN is simultaneously rolling-out promising technologies over its VDSL network and FttH.

‘Today’s announcement forms an integral part of our wireline strategy. KPN believes that FttH is an important long-term technology and provides regional strength in the medium-term. We see good results in the fiber areas with increasing broadband and TV market shares and we will continue to roll-out FttH in promising areas via the Reggefiber joint-venture.’ (Eelco Blok, CEO KPN)

KPN Telecom NV (NYSE: KPN)