Edam-Volendam chooses instead to build fibre network with GlasDraad
Netherlands municipality Edam-Volendam has signed a joint venture with fibreco GlasDraad to complete an open infrastructure dark fibre network which will see the three major telcos KPN, VodafoneZiggo and Odido all offering services from day one – a first for the country, according to the companies involved. Smaller providers can also use the open network to offer their services.
KKR majority-owned Open Dutch Fiber (ODF) had begun the fibre build to the municipality but reportedly ended up in dispute, culminating last week with Edam-Volendam announcing the end of disputes between the parties and that it had agreements with ODF about the construction and will immediately take over their activities. This means that everything that has been constructed or will be constructed by ODF will now be managed by GlasVezel Edam-Volendam.
As a result, only one fibre wholesale network will be installed by Glasvezel Edam-Volendam, the joint venture between the municipality and GlasDraad. Financial terms involving the various parties were not disclosed. In a related move, last week GlasDraad took out a new €110m loan, led by ABN Amro and Belfius, to spend on new fibre rollout.
The moves signal a lot of repositioning in the Dutch community fibre network space, all the while being watching closely by incumbent KPN. Earlier in January, for example, KPN acquired Coöperatie Glasvezel Noord’s fibre network, built by volunteers and covering around 3,700 addresses.
And last April, Glaspoort, the open fibre infrastructure joint venture between KPN and pension fund ABP, has agreed to buy a 50% stake in GlasDraad, which itself is part of TINC, the infrastructure investor listed on Euronext Brussels. While Glaspoort is mainly active in smaller municipalities, villages and business parks, GlasDraad provides its services primarily to rural areas. Glaspoort has the option to fully acquire GlasDraad in the longer term.
One fibre network
GlasVezel Edam-Volendam will collaborate with two contractors: its original contractor Direxta and Artemis. Artemis will soon carry out work in the municipality’s streets on behalf of GlasVezel Edam-Volendam and also Direxta, but in other parts of Edam-Volendam. The municipality has promised to keep residents abreast of the rollout, initiating “construction evenings” and a regular newsletter.
According to Stratix Consulting, which advised the municipality, Edam-Volendam is one of the last municipalities who is still the cable operator for the towns of Edam and Volendam. Ziggo provides the services, but the municipality owns the network. In many other municipalities, the cable network has been sold and/or upgraded to fibre. All customers will now be offered the opportunity to switch from cable to fibre for free and construction has already begun with the first connections expected to become active this quarter.