Dutch fibre network operator Reggefiber has bought the city of Rotterdam’s fibre-to-the-home (FTTH) network for €2mn, covering over 5,000 homes across the city.
The network began operations in 2005 yet currently provides services to just 820 customers, with the city council taking a €2.3mn loss on its sale to Reggefiber.
Reggefiber spokesperson Antonette van Beem is quoted by Telecompaper as saying that the company is currently evaluating synergies and will work over the coming months on adapting the Rotterdam network to its own infrastructure and services model.
There was one other bidder for the network – a rival fibre operator called Wiericke – with the winning bidder obliged to maintain service level agreements for existing subscribers.
Reggefiber is currently expanding its network around the country, and will eventually implement its existing operating model in Rotterdam, including demand aggregation in target areas before roll-out.
Dominant Dutch telco KPN increased its stake in Reggefiber from 10% to 51% last November for €99mn. Reggefiber’s network covered around 1mn homes by October 2012.