More on Dutch Fiber!

26 Nov

Nl_dp
I've been so snowed under with work and trips these last few days that I haven't been able to comment on the announcements/regulation proposals by OPTA regarding FTTH deployment in the Netherlands. It's in the nature of blogging that your "time to market" on any given event is limited, and inevitably the usual suspects have commented in much more depth than I can dream to do. So this leaves me to point you out to what they write and just comment on it. Not a bad position to be in, mind you, they did all the hard work!

There's a number of things I find interesting here.

First of all, the proposed wholesale prices that OPTA puts forward are not crazy, and the discount mechanism encourages competition: since it's the global usage ratio of a given area pop that will determine the price per line, it stands to reason that competitors are encouraged to target an area where KPN has a significant presence already. You could argue that there's a first mover advantage, but the marginal cost of being a second mover goes down nonetheless.

The second thing I find interesting is this WACC calculation to adjust the prices. Effectively, this encourages KPN to roll-out not just in high revenue areas if they wish to avoid push-back.

Overall though I'm really pleased because with these figures I can start modelling on "reasonable prices". My one frustration is that I'd love to see KPN's proposed bitstream offer. But since that's likely not to be regulated, it's not in there…

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