Dutch telecom giant KPN announced plans on Wednesday to invest more than €5 billion ($5.83 billion) in the Netherlands by 2030 as it ramps up spending on next-generation infrastructure including fibre-optic networks, 5G, artificial intelligence, and cybersecurity.

The company also said it would increase dividend payouts starting in 2026, promising to distribute 80% of its free cash flow to shareholders. KPN expects dividends to rise to €0.20 per share in 2026 and €0.25 per share in 2027.

At 08:15 GMT, KPN shares were up 1.7%, outperforming the broader pan-European STOXX index, which slipped about 0.3%.

Investment and Cost Plans

KPN revised its cost-saving goals, delaying its previous target to achieve €100 million in annual operating savings from 2025 to 2030. Capital expenditure, meanwhile, is expected to drop below €1 billion by 2027 before stabilizing, according to the company’s new guidance.

Having already connected 70% of Dutch households to its fibre network, KPN said it would accelerate expansion, aiming to reach 85% by 2030—up from an earlier goal of 80% by 2026.

The telecom operator also highlighted ongoing collaborations with the Dutch government and private partners to develop an independent cloud infrastructure, strengthening the country’s digital resilience.

($1 = €0.8575)