Dutch number-one KPN is to modernise its mobile network to make it suitable for future demands, with the project due to be completed by 2014, reports Dow Jones Newswires.

The company stated that nearly all of its 3,900 base stations in the country will be upgraded. No figure was given but a spokesman said the investment is in line with its capital expenditure planning.

With high smartphone penetration in the Dutch market, demand for mobile data has surged in the past year, making the network revamp a welcome development. Number-two operator Vodafone Netherlands said last week that it plans to accelerate investment to modernise its network for similar reasons.

KPN and Vodafone Netherlands recently announced an infrastructure sharing pilot due to start in September 2012 and are examining the possibility of further collaboration.

KPN recently saw 28 percent of its shares fall into the hands of Latin American operator group America Movil. In a move that was seen as warding off a hostile bid from America Movil, KPN attempted to find a merger partner for its German subsidiary E-Plus but is now believed to be considering the sale of cell towers used by E-Plus instead.

The Dutch operator said last week it will pursue a constructive dialogue with America Movil about “potential areas of cooperation that are viable, value accretive, in line with our strategy and in the interests of all shareholders and other stakeholders”.