Vodafone Sues KPN for Fixed-Line Abuse

Operator claims Dutch incumbent delayed its launch of fixed-line offerings by three years.

Iain Morris, International Editor

December 10, 2015

2 Min Read
Vodafone Sues KPN for Fixed-Line Abuse

Vodafone Netherlands is suing KPN for preliminary damages of €115 million ($126 million), claiming that anti-competitive behavior by the Dutch incumbent delayed its introduction of fixed-line and TV offerings by three years.

Vodafone Netherlands says it was unable to obtain access to KPN's fixed-line network to launch its Vodafone Thuis service, which was finally introduced last year.

During that time KPN Telecom NV (NYSE: KPN) launched its own package of fixed, broadband, mobile and TV services. Vodafone insists this was a crucial period for adoption of "all-in-one" packages -- with more than 100,000 households adopting those services -- and that it lost out significantly as a result.

"KPN has repeatedly failed to deliver on its commitments and has instead seriously abused its dominant position," said Rob Shuter, the CEO of Vodafone Netherlands, in a company statement. "This is bad for consumers, bad for the development of the Dutch telecom market and bad for competition."

For more fixed broadband market coverage and insights, check out our dedicated broadband content channel here on Light Reading.

The dispute reflects long-running concern in Europe about the ability of alternative "asset-light" operators to compete against former state-owned incumbents, which is driving some players to acquire their own networks.

Vodafone Group plc (NYSE: VOD) has taken similar action against eir in Ireland, Telefónica O2 Czech Republic in the Czech Republic and Telecom Italia (TIM) in Italy.

It has also complained about the dominance of the UK's BT Group plc (NYSE: BT; London: BTA), which is set to become an even more powerful rival following a £12.5 billion ($19 billion) takeover of mobile giant EE . (See BT Locks Down £12.5B EE Takeover Deal.)

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

Read more about:


About the Author(s)

Iain Morris

International Editor, Light Reading

Iain Morris joined Light Reading as News Editor at the start of 2015 -- and we mean, right at the start. His friends and family were still singing Auld Lang Syne as Iain started sourcing New Year's Eve UK mobile network congestion statistics. Prior to boosting Light Reading's UK-based editorial team numbers (he is based in London, south of the river), Iain was a successful freelance writer and editor who had been covering the telecoms sector for the past 15 years. His work has appeared in publications including The Economist (classy!) and The Observer, besides a variety of trade and business journals. He was previously the lead telecoms analyst for the Economist Intelligence Unit, and before that worked as a features editor at Telecommunications magazine. Iain started out in telecoms as an editor at consulting and market-research company Analysys (now Analysys Mason).

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like