ACM deregulates KPN business network but postpones decision on retail networks

ACM has taken a definitive decision to deregulate the Dutch market for ‘high-quality wholesale access’, which means that KPN no longer has to open up the business part of its copper network. A decision on local access to fixed telecom networks will follow in early 2022.

The regulator’s decision to deregulate the high-quality wholesale access market is final once the European Commission had no comments about it. This only concerns specific high-quality access services for business end-users and then only the copper network. The fiber optic network had already been deregulated in this area.

After investigation, ACM has come to the conclusion that at the end of 2020 KPN had a market share of 25 to 30 percent in the market for high-quality wholesale access, while Eurofiber had a market share of 40 to 45 percent and T-Mobile had 20 to 25 percent of the market. . ACM: “Given that KPN is no longer the largest provider in this wholesale market and the market is tending towards an oligopoly, ACM sees no reason on the basis of the market shares to determine a position of significant market power of KPN or Eurofiber in this wholesale market. “

At the same time, the regulator has noted that there are factors that could increase or decrease KPN’s market share and it is uncertain how this will develop up to and including 2025. The ACM also notes that KPN has a considerably higher market share in the retail market for business network services.

In the meantime, the competition regulator is still working on a decision on possible regulation of KPN’s national fixed networks, on which parties without their own national network depend in order to be able to offer internet, television and telephone services. This draft decision would actually appear for consultation this year, but the ACM reports that it is expected to happen before the end of the first quarter of 2022. T-Mobile asked ACM to properly investigate the market after the court in 2020 drew a line by regulating the networks of VodafoneZiggo and KPN.

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