KPN, Reggefiber JV Approved

THE HAGUE, Netherlands -- On Friday the Dutch Competition Authority (NMa) has given KPN and Reggefiber its approval for the Fiber-to-the-Home (FttH) joint venture Reggefiber, a company which is specialized in constructing and operating fiber access networks.

As announced on 22 May 2008, KPN has a minority stake of 41% in Reggefiber, while Reggefiber holds 59%. KPN has the possibility to increase its share in Reggefiber at a later stage, if the joint venture reaches specific milestones.

NMa’s approval means that KPN can continue its investments in FttH as announced earlier in 2008. However, KPN does not yet have the intention to roll out FttH on a large scale in the Netherlands. KPN and Reggefiber will assess all plans based on timing and location, considering whether new investments can be justified commercially whilst taking into account the regulatory framework. KPN will proceed with its current FttH pilots in five Dutch cities. A commercial evaluation will be conducted in the first half of 2009.

KPN Telecom NV (NYSE: KPN)