Connecting everyone in the Netherlands

Leading infrastructure
In an era when digital connectivity is paramount, the Netherlands stands out as a leader in embracing and advancing technological innovation that empowers and connects everyone, thanks to our digital infrastructure. We believe that strong personal connections support constructive dialogue and open up new opportunities for all. That is why we remain committed to our purpose: to connect everyone in the Netherlands to a sustainable future. 

The Netherlands is a highly digital-savvy country, is densely populated, and its economy continues to be one of the strongest in Europe. All this makes it an attractive market to operate in. However, as in other countries, we are seeing pressure from geopolitical developments leading to potential supply chain issues, rising labor costs, and we are facing a tight labor market. 

Addressing many of our biggest challenges will depend on excellent communications infrastructure and services. With people spending a lot of time of their day online, new solutions are being developed that use connected devices, real-time data processing and low-latency communication. Having access to a superior digital infrastructure and outstanding services is important – and we are playing a key role in facilitating this in the Netherlands.

Connect, Activate & Grow
As we stepped into 2024, we embarked on the first year of our ambitious Connect, Activate & Grow strategy. Over the previous years we have consistently delivered on our commitments to drive growth and technological advances. Built on these strong foundations, our strategy translates into ambitions we aim to achieve by 2027. 

We aim to be the preferred partner for digital services and innovations in the Netherlands, becoming the number one internet and mobile service provider. We are transforming our company to a fully digital operating model through effective network management and modernization, ensuring the best digital experiences for our customers. Our people-centric culture will foster sustainable growth, and our commitment to high environmental, social and governance (ESG) standards will make us a force for good in Dutch society. 

This is how we are shaping a future where KPN stands at the forefront of innovation, connectivity, and sustainability.

Digital experience
We aim to deliver the best digital customer experience, and in 2024 we made good progress. We are investing heavily in programs supporting our digital front end to deliver an omnichannel and app-centric experience, where customers can be fully in control and easily able to activate and manage products and services themselves. And we are further improving our customers’ experience through personalization, enabled by unlocking relevant data sources across the company as well as leveraging the power of artificial intelligence.

Connecting the Netherlands
In 2024, we scaled up on connecting households, with a record number of homes connected, including our joint venture Glaspoort. We now entered the final phase of our fiber rollout. Together with Glaspoort, we now cover 63% of Dutch households with fiber and we are gradually progressing towards our target of roughly 80% by the end of 2026. Our focus has gradually shifted from laying the basic infrastructure to connecting and activating homes and offices.

We have also made significant strides with our mobile network. Already recognized as one of the best in the world, it is now strengthened by the acquisition of an attractive frequency package in the 3.5 GHz auction, at a fair price. This enables us to enter the next phase of 5G services and provides more capacity in busy areas, making our customers' mobile experience even better. 

To further strengthen our mobile infrastructure in the Netherlands, we announced a partnership with Dutch pension fund, ABP. This partnership includes passive mobile infrastructure such as towers and rooftop locations that will be housed in a new company named Althio. By joining forces, we ensure control over strategic locations and the continuity of the mobile network, essential for the continued development of the 5G network in the Netherlands. The Authority for Consumers and Markets (ACM) approved the creation of Althio on 6 February 2025.

Quality
Quality and first-time right service are priorities that we always keep top of mind. We continue to aim for further improvements and innovations that reinforce our commitment to customer satisfaction and maintain our industry-leading Net Promoter Score (NPS). In a competitive market, quality assurance for all our customers, a top-notch experience and simplified digitized processes are vital to sustain our leading market position.

#BetterInternet
We are committed to fostering a better internet: a safer, greener and more social internet. An internet that is a part of society, where everyone can thrive and feel welcome and safe. In 2024 we launched a campaign to highlight the issue of online shaming, with the message “Think before you forward”. This campaign translated into educational content and received national and international recognition.

We uphold fundamental human rights across our entire supply chain. We are committed to diversity and inclusion in every aspect, and we continue to be a frontrunner on the road towards achieving net-zero emissions and circularity. We have invested in sustainable energy sources and from 2025 onwards a large part of our electricity needs will be met by power from the new Kabeljauwbeek solar farm. Two years later, we will be adding wind energy from the Ecowende wind farm. So, in three years time we will be serving our customers via a sustainable network that is largely powered by Dutch solar and wind energy.

Navigating a changing world
In a society increasingly facing instability, social shifts and polarization, cybersecurity threats are on the rise. People and businesses rely on digital systems, making the impact of cyberattacks potentially immense. That is why our “Security First” strategy is at the heart of what we do. Every day, we are working with our partners towards a safer and more resilient online ecosystem. 

We are committed to responsible AI, as underscored by our signing of the European AI Pact. We have developed a framework that outlines how to deploy AI responsibly, safely, and compliantly. This framework embodies our key values, such as transparency and inclusivity, and sets out the processes and governance needed to put these values into practice. 

We need to anticipate potential deficiencies in power supply, as well as investing in sustainable energy solutions (wind and solar) and optimizing energy consumption, we are developing strategies to minimize the impact of grid congestion. We are working with grid operators and all relevant stakeholders to find future-proof solutions. 

We are also aware of the impact of critical resources in our supply chain, and are taking measures to reduce our dependence on such resources and contribute to a more sustainable future. For example, we ask suppliers to develop products that are circular. And we are working with various organizations to reduce the impact of critical resources in the supply chain. 

We are proud of our contribution to the Netherlands’ digital infrastructure. We are navigating through economic fluctuations, geopolitical tensions and technological advances with flexible business strategies to ensure continuity and reliability for our customers.

Transparency and accountability
Integrating the Corporate Sustainability Reporting Directive (CSRD) into our annual report has been a challenge. We already reported in detail on our impact on people and the environment. However, the extensive scope of the CSRD helps us to make better choices and promotes greater transparency. While we are focusing on the CSRD, we are also keeping a close eye on new legislation such as the upcoming Corporate Sustainability Due Diligence Directive (CSDDD) and the European Accessibility Act (EAA).

Our people, our strength
We aim to position ourselves as one of the best places to work. Over the past year, we have focused extensively on initiatives that significantly improve our position in the labor market. Our consistently strong engagement score demonstrates our success in keeping our people motivated and we remain committed to strengthening KPN as a leading employer. A milestone in these efforts was the implementation of our innovative two-year collective labor agreement (CLA) in 2024. This is an essential step that helps us attract and develop talent, retain our employees and cater to the diverse needs of our multigenerational workforce. For example, as part of this initiative we have launched a program to assist young talents in repaying their student loans and we are encouraging our people to make the most sustainable commuting choices.

Successful together
I would like to thank our customers and shareholders for their continued trust and support, and the whole of “Team KPN” for their great contribution in 2024. We have achieved impressive results, and I look forward to making 2025 another successful year. Together, we are building a sustainable future full of new opportunities.
 

Joost Farwerck,
CEO and Chairman of the Board of Management of KPN