Vodafone’s Netherlands unit is taking legal action against rival KPN, which it claims failed to provide the technology it needed to enable it to launch a DSL-based triple-play service and therefore caused it to miss out on market growth.
The mobile operator is suing for damages totalling an estimated €115 million, it announced on Thursday.
According to Vodafone, KPN repeatedly failed to meet its commitments to enable it to introduce its fixed telephony, broadband and TV offer ,Vodafone Thuis.
"The delays resulted in Vodafone Netherlands being unable to compete effectively with KPN (and cable providers) in the Dutch telecoms market until 2014," Vodafone said.
A spokesperson for Vodafone explained to Total Telecom that KPN had agreed to build a virtual Internet service provider (VISP) platform to support DSL and fibre access to enable it to roll out a live service in five months. However, KPN failed to deliver the DSL element of the deal, forcing Vodafone to build its own platform.
"All in all, this resulted in a three-year delay for us," the spokesperson said.
While it did not provide the services it had agreed with Vodafone, KPN was still able to offer converged services of its own under its core brand and that of value brand Telfort, Vodafone states. This resulted in Vodafone missing out on a period of intense activity in the multi-play space, preventing it from gaining market share.
KPN’s actions constitute an abuse of its dominant market position, Vodafone said.
"This is bad for consume rs, bad for the development of the Dutch telecoms markets and bad for competition," said Rob Shuter, CEO of Vodafone Netherlands.
"We hope that taking this legal action will help to rectify the harm caused by KPN’s actions and alter its future behaviour."
Vodafone has lodged its claim with the court of justice in The Hague. Initially it is asking the court to confirm that KPN’s behaviour was unlawful.
Vodafone believes it has precedent on its side, listing various European markets – including Spain, Italy, the Czech Republic and Slovakia – in which incumbents have been censured for abuses in the fixed-line space in recent years.
It also noted that it, along with rival players, has this month entered into a formal dispute with Ireland’s Eir over the repair times on its fixed network.
This piece was updated on 10 December to include Vodafone’s comments on the nature of its agreement with KPN.
