Municipal council backs CityNet FTTH project

9 Jan 2006

City Councillors in Amsterdam have overwhelmingly endorsed plans to roll out the first phase of a citywide fibre-to-the-home (FTTH) network, dubbed Citynet, that will connect more than 40,000 homes in the capital. The initial EUR30 million (USD36.3 million) phase was backed by all 45 members of the Council and will be funded through City of Amsterdam funds, as well as by five housing corporations and ING Group. If successful, the FTTH network will be expanded to cover all of the capital’s 420,000 homes and businesses. The move will intensify competition in the broadband internet market and threatens the market positions of telcos such as KPN and triple-play provider UPC, which has already cut prices in response to the fibre threat. However, local analysts have welcomed the news with James Enck, an analyst for Daiwa Securities SMBC Europe saying it is a ‘complete knock-out blow [for] municipal networks’ and the ‘perfect start for 2006 for those who wish to see more robust connectivity for all’.

Netherlands,KPN, VodafoneZiggo,

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