Advanced Television

KPN acquires Caiway

May 2, 2011

By Colin Mann

Incumbent Dutch telco Royal KPN NV (KPN) is to acquire Dutch cable MSO Caiway from its current shareholders, Rabo Bouwfonds’ Communication Infrastructure Fund (CIF) and Caiway’s management, for an undisclosed sum.

Caiway provides television, broadband and telephony services in several municipalities in the Netherlands through the cable and fibre infrastructures of CIF and a number of regional cable operators. The deal sees KPN acquire the service provider activities and network lease contracts and will not acquire the passive infrastructure assets.

KPN says the acquisition is in line with its strategy to strengthen its position in the Dutch television and broadband market. KPN confirms it will provide ‘open access’ to other operators and service providers which fits its philosophy of ‘open access’ cable, fibre and other telecom networks. Caiway will continue to operate under its current brand and develop its fibre network roll-out.

At the end of the first quarter of 2011, Caiway served some 158,000 customers, who subscribed to 143,000 TV, 74,000 Internet and 33,000 voice services. KPN says it will respect existing Caiway customer contracts. KPN and Caiway will continue to improve Caiway’s current customer services and portfolio given the increasing demand for faster, broader and more reliable service.

The completion of the acquisition is subject to approval by the Dutch competition authority, NMa. The relevant works councils have been notified and asked for advice.

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