KPN turns back on CAIW takeover

10 Apr 2012

Dow Jones Newswires reports that Dutch incumbent KPN Telecom has abandoned plans to acquire domestic cable provider Caiway (CAIW) from Rabo Bouwfonds’ Communication Infrastructure Fund (CIF), citing the numerous objections raised by the competition authority Nederlandse Mededingingsautoriteit (NMa) as the reason. The NMa is concerned, amongst other things, that KPN’s takeover of the firm will give it a too dominant position in the areas that CAIW operates in.

TeleGeography’s GlobalComms Database writes that the competition authority launched a further investigation into KPN’s proposed takeover of CAIW in August last year, after initial findings concluded the deal could seriously undermine competition in the cableco’s footprint. The NMa was concerned that by acquiring the cableco and its copper-wire assets in areas served by CAIW (mainly in the west of the country), all networks there would effectively be owned by a single company – KPN – reducing end users’ choice for fixed telephony, internet and TV services. As such, the authority decided that further research was needed to decide if the proposed acquisition could take place. The NMa’s position was echoed at the time by national telecoms watchdog OPTA. The acquisition was first announced on 2 May 2011.

Netherlands, DELTA Fiber Nederland (incl. Caiway), KPN