AMSTERDAM, Jan 29 (Reuters) – The chief executive of KPN said on Wednesday that the Dutch telecom firm’s annual capital expenditure plans of 1.1 billion euros ($1.22 billion) do not include the cost of purchasing bandwidth to be auctioned by the government for its 5G network build-out.
Joost Farwerck told reporters in Rotterdam that the spending plan includes only its current fibre optic roll-out of around 300,000 households annually and costs from physically upgrading mobile towers in advance of 5G.
The government has said it expects to raise at least 900 million euros from the bandwidth auction which is due to take place by the end of June.
KPN has an estimated 44% share of the Dutch mobile market but CFO Jan Kees de Jager said on Friday it would not be correct to conclude the company will bear proportionate costs from the auction.
$1 = 0.9014 euros
Reporting by Toby Sterling; editing by Jason Neely