KPN, the Netherlands’ incumbent telecom operator, unveiled a major funding plan on Wednesday, committing north of €5 billion to investments at home through 2030. The spending will prioritise fibre-optic expansion, accelerated 5G deployment, stronger AI capabilities and enhanced cybersecurity systems to serve homes and businesses.

The group also announced a stepped-up dividend policy beginning in 2026, with payouts set at €0.20 per share that year and rising to €0.25 per share in 2027. KPN said it plans to return 80% of its free cash flow to shareholders, underlining management’s confidence in the company’s long-term cash generation despite uncertain markets.

Management has revised its efficiency timetable, now targeting annual operating cost savings of €100 million by 2030 rather than the earlier 2025 goal. Capital expenditure is projected to fall below €1 billion in 2027 before settling in the years that follow.

Analysts say KPN’s strategy mirrors a wider European pattern as telecom firms funnel resources into next-generation networks and digital infrastructure to satisfy growing consumer demand for faster, more secure connectivity.