Besides building and operating its own FTTH/O systems, UHBA Netherlands will lease capacity on Reggefiber’s FTTH systems in order to become a Virtual System Operator. KPN, the Dutch incumbent that owns 41% of Reggefiber, also plans to operate on these systems. But since the Dutch regulator has forced Reggefiber to provide “open access” to its systems, everyone can provide services over those systems under the right T&C.

In other words, UHBA will piggyback on Reggefiber’s systems to provide triple-play services. The Company will thus create a hedging and risk-management strategy for its own build-and-own operations.

• As of 2009, Reggefiber has a FTTH footprint of approximately 300,000 homes passed.

• 185,000 of those are passive connected (operational, ready to be activated)

• Number of actual subscribers to Reggefiber’s systems is not public.

Reggefiber plans to connect 2 – 3 million households and offices to its FTTx systems.

• UHBA NL plans to provide services to 500,000 – 1,000,000 of Reggefiber’s connections by 2015, which is on top of the 1.5 million connections the company plans to build and operate on its own account.

• The cost-per-connection, cost-per-acquisition, and the cost-of-operation of becoming a Virtual System Operator on Reggefiber’s system are included in UHBA NL’s €5B FTTH/O and FWMA investment scenario.