Dutch operator KPN announced a strategy to drive sustainable growth to 2027 and will invest more than €4.5bn to achieve its goals
Dutch operator KPN has announced a new strategy, Connect, Activate & Grow, to drive sustainable growth up to 2027. During that time, it is to invest more than €4.5 billion in its networks and the digitalisation of the Netherlands.
The plan is to modernise and streamline operations, creating an operational model that relies on AI-powered automation and “a future-ready workforce”.
To achieve its goals, the operator will invest capex of €1.2 billion each year until 2026, then expects capex to dip to under €1 billion in 2027, as fibre build-out near completion.
Between 2024 and 2027, KPN’s target compound annual growth rate (CAGR) is about 3% for service revenues and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).
Importance of fibre
Fibre access infrastructure is at the core of its strategy: the operator is busy with a fibre build-out with the goal of reaching 80% of premises by the end of 2026. KPN and its joint venture, Glaspoort had passed 55% of Dutch premises at the end of Q3 2023.
In a statement the operator said, “KPN has a much larger homes-connected percentage compared to its main competitors and intends to maintain this competitive advantage through improvements to the end-to-end fibre value chain.
“This is important as KPN continues to see an attractive fibre business case, with market share gains in fibre areas and higher ARPU levels compared to copper”.
KPN also plans to be the market leader in service revenue through “an unrivalled range of services, such as OTT packages, security and gaming, on top of the highest quality fibre and 5G connectivity”. More details were not forthcoming.
Business-to-business
KPN claims to be the Dutch market leader in providing enterprises with ICT solutions, fixed access and mobile solutions through its Tailored Solutions unit. As part of the new strategy, it intends to launch unspecified “innovative services through new building blocks”.
The company will digitise customer-facing processes as part of the modernisation of its operating model and to improve customers’ experience. The press statement read: “simplification and automation should drive significant quality improvements, efficiencies and indirect opex savings for the company”.
Joost Farwerck, CEO of KPN, added, “We will take significant steps to further modernise our operating model, leveraging the power of automation and AI, realising exceptional service experience and driving substantial savings in indirect costs”.