• DTCP will deploy Fiber-to-the-Home (FttH) broadband across the Netherlands’ urban and denser population areas. Thus, providing high-quality fiber connections to the Dutch households and businesses.

KKR and DTCP to develop digital infrastructure

Together KKR and DTCP are planning the development of digital infrastructure and growth equity. In collaboration, the companies have publicized Open Dutch Fiber’s launch and a strategic agreement between T-Mobile Netherlands and Open Dutch Fiber.

KKR is a well-known investment firm globally, and DTCP is a leading investment management platform.

KKR owns an independent platform, Open Dutch Fiber and DTCP is a minor shareholder of KKR. Being a minor shareholder at KKR, DTCP will deploy Fiber-to-the-Home (FttH) broadband across the Netherlands’ urban and denser population areas. Thus, providing high-quality fiber connections to the Dutch households and businesses.

The platform’s Open architecture helps offer wholesale fiber services to all operators. In quarter two (Q2) 2021, Open Dutch Fiber will start operations with a fully-funded commitment for an envisaged capital expenditure of about EUR 700 million and construction agreements already in place.

Jordi Nieuwenhuis and Uwe Nickl will be leading Open Dutch Fiber. This is because they have a proven track record of delivering cost-efficient, rapid, and high-quality programs to deploy fiber broadband.

Open Dutch Fiber signed an agreement with T-Mobile Netherlands to support the rollout. T-Mobile Netherlands is known to be the best mobile operator and FMC challenger in the Netherlands. At present, T-Mobile Netherlands, which has a mobile base of about 6.8 million consumers and a fixed base of about 682,000, would be the anchor tenant for Open Dutch Fiber with a 20-year deal.

KKR will contribute via its Global Infrastructure Investors Funds. Also, KKR is one of the leading infrastructure investors worldwide, with a team of about 50 plus dedicated investment professionals.

At present, the organization manages about USD 27 billion in infrastructure assets and has made about 40 infrastructure investments across a range of geographies and sub-sectors.

KKR’s fiber deployment and digital infrastructure expertise will help Open Dutch Fiber, following similar recent investments in Hyperoptic in the UK, Deutsche Glasfaser in Germany, and FiberCorp in Italy.

DTCP Infra invests in European digital infrastructure within three main verticals, i.e., data centers, towers, and fiber.

Clifford Chance worked as a legal advisor to both KKR and DTCP. De Brauw Blackstone Westbroek acted as legal advisor and Morgan Stanley acted as exclusive financial advisor to Deutsche Telekom/T-Mobile.

Expert’s corner

Jordi Nieuwenhuis, Co-Founder of Open Dutch Fiber, commented: “High-quality and reliable fiber connectivity is essential for the Netherlands and this has only been accelerated with the structural changes to working patterns of companies and citizens brought about by the COVID-19 crisis. We are building a digital infrastructure platform with open access to all operators, to ensure an efficient and rapid deployment of capital resources, while avoiding uneconomical overbuild. We look forward to making a significant contribution to the digitization of the Netherlands to benefit Dutch households and businesses.”

Cristina González, Managing Director on the European Infrastructure team at KKR, commented: “We are excited about the opportunity ahead for Open Dutch Fiber as an independent FttH platform in the Netherlands, and one which will support the rollout of critical infrastructure for Dutch society. KKR will support Open Dutch Fiber with capital and deep expertise in delivering large-scale fiber deployment programmes.”

Vicente Vento, Co-Founder and CEO at DTCP, commented: “The creation of Open Dutch Fiber is an important milestone in the acceleration of fiber rollout in the Netherlands and a blueprint for innovative financing solutions in European digital infrastructure. We are firm believers in the sharing of digital infrastructure and are establishing Open Dutch Fiber as an open access model, enabling attractive economics for operators and best prices for consumers. We look forward to the collaboration with our partners.”