KPN and ABP join forces through new TowerCo

KPN and ABP pension fund are set to enter into a partnership with each other in which they will acquire and manage passive infrastructure for mobile networks. Approximately 3,800 mobile transmission masts and rooftop locations owned by KPN, NOVEC and Open Tower Company will be transferred to a new company, where they will continue to be accessible to the various mobile operators and other frequency users.

KPN and ABP are already developing the Netherlands’ digital infrastructure by working on the rollout of fiber together. The new partnership will focus on the passive mobile infrastructure, which is an important foundation for the 5G network thanks to an intricate grid of antenna base stations – including transmission masts and rooftop locations throughout the Netherlands. These locations also have space for mobile radio and antenna equipment. The passive infrastructure is one of the reasons why the Dutch mobile internet is among the best in the world and users can call, surf the web, play games and stream videos almost everywhere in the Netherlands.

Joost Farwerck, KPN CEO: “Our mobile network has enabled us to gain a very good position in recent years. We want to maintain and expand our mobile network in the future, to enable us to cope with the growing volume of data traffic – amongst other things. Our new partnership with ABP will improve control and flexibility at many of our mobile infrastructure locations and make the cost model more sustainable. That’s why we are joining forces with ABP and also merging a portfolio of approximately 3,800 transmission mast and rooftop locations throughout the Netherlands to achieve greater impact and synergy benefits.”

Harmen van Wijnen, ABP president of the board: “It’s important for us to invest in the Netherlands, to stimulate economic growth and employment and pave the way for key infrastructure projects. Our partnership with KPN will enable us to strengthen the Dutch mobile networks. The investment will generate an attractive return too, making this partnership significant for our pension participants in a number of respects as well. So, we’re definitely killing two birds with one stone: working on good pensions for our employees and good mobile and digital accessibility here in the Netherlands.”

Because space for transmission masts is at a premium, it has become more difficult for mobile operators to create new base stations in recent years. It can be tricky to replace existing locations when leases end too. Mobile base stations are important for the continuity of the network and the further expansion of mobile capacity, both in busy city centers and in less densely populated areas. So, KPN and ABP will work together to improve management of the passive network, resulting in future-proof use of the locations, harmonization and the simplification of leases. The infrastructure will continue to be available to other operators and the shared use of locations, amongst other things, will make it possible to offer financially-attractive usage and lease conditions.

The infrastructure was previously owned by KPN, NOVEC (owned by TenneT) and Open Tower Company (owned by NOVEC and ABP). The new company will have its own board, which will be responsible for operating the passive infrastructure with its own transmission masts and locations on high-voltage pylons and roofs. ABP is represented in this transaction by its asset manager APG. This announcement is still subject to the approval of the Works Council and the regulator. Click here for more information about the partnership and the associated financial details. The new partnership will not have any consequences for employment.

About KPN
KPN has been the leading supplier of telecommunication and IT services in the Netherlands for many decades. Everyone in the Netherlands uses the KPN network directly or indirectly every day, from the fiber connections in the ground to the card machines in stores or the matrix signs above the freeways. KPN serves consumers and business customers with telephony, data, TV, Internet of Things, cloud, workspace and security services via the nationwide network of the Netherlands, in which KPN is continually investing by laying fiber and rolling out technology such as the new mobile 5G network. KPN has an open network over which other providers also offer services. More information on www.kpn.com

About ABP
Stichting Pensioenfonds ABP (ABP) is the industry pension fund for employers and employees of government and educational institutions in the Netherlands. ABP has 3.1 million participants and 514 billion euros in available assets (as at 31 March 2024).