KPN exec urges investment in fibre optics

AMSTERDAM Jan 2 (Reuters) - Dutch telecoms firm KPN needs to invest more in expanding its fibre optic network to compete with rival cable companies, KPN board member Thorsten Dirks said in an interview published on Monday.

"Fibre optics will increase in importance in our battle with the cable companies," Dirks told KPN's in-house magazine Team KPN, adding: "In the Netherlands we must consolidate our position, while growing internationally."

Ziggo, owned by private equity groups Cinven and Warburg Pincus, and UPC, owned by Liberty Global Inc. , are both wooing customers with bundled packages of super-fast broadband, television and telephone services.

Dirks, who joined the KPN board in November 2011, is responsible for KPN's international mobile activities.

Eelco Blok, who took over in April as KPN's chief executive, said at the time he was not planning additional investments in fibre optics.

Dirks also confirmed that KPN faces tough competition from smartphone applications such as WhatsApp, because KPN customers make fewer calls and send fewer messages, resulting in declining income.

"We'll need to find an answer to this, so we can get back to the right balance," Dirks said.

KPN shares closed up 0.84 percent, underperforming the main index which was up 1.39 percent. (Reporting by Tjibbe Hoekstra; Editing by Sara Webb)