KPN to Invest €5B in Netherlands, Boosts Dividends to Shareholders

Dutch telecom giant KPN announced a sweeping investment plan on Wednesday, pledging over €5 billion in its home market through 2030. The focus will be on strengthening fibre optic networks, rolling out 5G technology, enhancing artificial intelligence capabilities, and bolstering cybersecurity infrastructure.

The company also revealed plans to increase shareholder dividends starting in 2026, setting payouts at 0.20 euro per share in 2026 and 0.25 euro per share in 2027. KPN emphasized that it intends to distribute 80% of its free cash flow as dividends, signaling confidence in long-term profitability despite global market uncertainties.

KPN adjusted its cost-saving ambitions, now targeting annual operating cost reductions of €100 million by 2030, later than the previously planned 2025 timeline. Investment spending is expected to dip below €1 billion in 2027 before stabilizing in subsequent years.

Industry observers note that KPN’s move aligns with broader European telecom trends, where companies are heavily investing in next-generation networks and digital infrastructure to meet rising consumer demand for faster and more secure connectivity.