APG and KPN today completed the transaction to launch a joint venture in fiber optics: Glaspoort. The new Amsterdam-based company will now begin to roll out fiber optics in villages, small communities and business parks. The scope of the joint venture has increased by 75,000 households. This will enable 750,000 households and 225,000 businesses to get connected to fiber optics by 2026.
Over the next five years, Glaspoort will be investing over 1 billion Euros in rolling out fiber optics. Thanks to sufficient construction capacity and external financing, Glaspoort can have a quick start. More than 70,000 fiber optic connections are expected to be added this year. The name Glaspoort refers to fiber (glass) and port, as the gateway to the digital future.
Many advantages
The past year underlined the importance of reliable, safe and fast internet for Dutch society. In the next few years, nearly 1 million customers in more remote areas will have the opportunity to enjoy the benefits of a fiber optic connection. The required construction capacity will create more than 1,000 additional jobs.
Patrick Kanters, Managing Director of Global Real Assets at APG, is pleased with the formal launch of Glaspoort. “We look forward to building the new company with KPN and enabling the rollout of fiber optics to nearly 1 million customers. This joint venture will make a significant contribution to the Dutch digital infrastructure. It is also expected to generate attractive returns for our pension fund customers. The rollout will also contribute to energy savings. After all, fiber is more energy-efficient than copper or cable.”
Nearly national fiber coverage
“This transaction creates additional value for all stakeholders,” KPN CEO Joost Farwerck tells us excitedly. “Thanks to the expanded scope of the project, even more villages can be connected to state-of-the-art fiber infrastructure at an accelerated pace.” Combined with KPN's own rollout of about half a million households per year, this will result in nearly national fiber coverage (80 percent) by 2026. A result that would otherwise not be achieved until much later. Farwerck: “With 5G, fiber will provide the most modern and powerful network, which will support the Netherlands well into the 21st century.”
Open network strategy
The new network company has an open network strategy. Although KPN acts as the main tenant on the network, Glaspoort offers access to external operators who opt for this. End users can therefore select a telecom company of their choice. This will promote competition and innovation in the Netherlands.
Jan Willem Scheerder and Ferry Niers have been appointed as respectively CEO and CFO of Glaspoort. Scheerder previously held various executive positions in Wholesale Services and International Carrier Business and led several start-ups. Niers has over 14 years of experience in the TMT industry and held Corporate Finance and M&A positions at KPN and KPMG.
Also read: Why is a pension investor investing in fiber optics technology?
For more information about Glaspoort, visit: glaspoort.nl