Netherlands - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in the Dutch telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major players, revenues, subscribers, ARPU, MoU;
• Internet, VoIP, IPTV;
• Mobile voice and data markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and digital media;
• 3G subscriber and mobile ARPU forecasts to 2015;
• Broadband market forecasts for selective years to 2020.

Key developments:

UPC and Ziggo no longer required to open cable networks to competitors; KPN reveals strategy to 2015; UPC launches mobile internet services for SMEs; regulator rules against commercial FttH access on KPN network; Ziggo completes IPO; Grupo Casa bids to increase stake in KPN to 28%; new regulator from 2013 to merge three entities; Ziggo obliged to launch mobile services by end-2012, becoming a quad player; triple-play in a third of households; KPN signs distribution deal with BBC Worldwide; Vodafone to launch triple play offer on Reggefiber’s network; T-Mobile launches quad-play offer; KPN DSL base falls in 2012; KPN to upgrade its FttH to 1Gb/s and cover 20% of households by end-2013; smaller cablecos by-passing DOCSIS3.0 for FttH; KPN buys out Reggefiber; average download speed reaches 16Mb/s; KPN launches 500Mb/s FttH service; Parliament legislates network neutrality; KPN, T-Mobile and Vodafone join with banks to launch m-payments system in 2012; UPC launches mobile data services; decline in SMS as consumers switch to online messaging services; Ziggo becomes mobile services player; KPN ends its mobile TV service to reuse spectrum for Digitenne DTT platform; T-Mobile Netherlands deploys HSPA+; regulator planning late-2012 multi-spectrum auction.

Companies covered in this report include:

KPN, Reggefiber, Ziggo, UPC Netherlands, Orange Netherlands, Versatel, Vodafone Netherlands, Tele2 Netherlands, Scarlet Telecom, Digitenne, Nozema, Canal Digitaal, Telfort, Glashart, Teleplaza, OONO.

Researcher:- Henry Lancaster
Current publication date:- May 2012 (10th Edition)

Executive Summary

Cablecos’ mobile services adding to bundled services mix

BuddeComm’s quarterly publication, Netherlands - Telecoms, IP Networks and Digital Media, provides a comprehensive overview of the trends and developments in the telecoms and digital media sectors in this leading market. The report includes the regulator’s market data to end-2011, telcos’ operating and financial data to Q1 2012 and market developments into mid-2012.

Telecom overview

The Dutch telecom market has one of the most developed infrastructures in Europe, providing a solid foundation for the country’s IP-services offerings. Almost 90% of the population uses the internet, while the high broadband take-up has benefited from government support and competing cable, fibre and DSL platforms. FttH networks have become also a significant feature of the country’s broadband landscape, with an effective collaboration between national, regional and municipal governments working with the industry and with academic institutions to ensure that the Netherlands maintains its broadband lead into the fibre age.

A bill to make the Authority for Consumers and Markets responsible for telecoms regulation from the beginning of 2013 may revitalise regulatory matters, with a greater focus on consumer protection. The ACM will be the merged authority incorporating OPTA, the Consumer Authority and the Netherlands Competition Authority (NMa).

Broadband sector

The strong broadband infrastructure has provided a range of content and digital products, including bundled offers. There are at least a dozen operators offering a double-play package (fixed-voice telephony and broadband), while several others offer TV and broadband and full triple play services (TV, broadband and fixed voice) to more than a million subscribers. Quad-play offers are available from a number of players.

Mobile sector

Growth in the mobile sector since 2006 has largely been due to strong competition among network operators and the range of MVNOs which has kept consumer prices low. The recent market entry of the cablecos Ziggo and UPC Nederland has created additional competitive pressure – both operators were awarded spectrum in the 2.6GHz band, allowing them to complement their existing bundled services (based on fixed-line access) with mobile voice and broadband offers.

Key telecom parameters – 2010; 2013

(Source: BuddeComm)

Key Highlights

• In May 2012 the Dutch Parliament passed the world’s first net neutrality legislation, affecting mobile and fixed internet networks.
• Pending legislation will make the ACM, the merged authority incorporating OPTA, the Consumer Authority and the NMa, responsible for telecoms regulation from the beginning of 2013. The ACM will be run by a three-member board focussed on consumer protection, industry-specific regulation, and competition oversight.
• Overall average realised download speeds have risen from 2.8Mb/s in 2006 to 5Mb/s in 2008 and 16Mb/s in early 2012. This jump in data speed is largely the result of the growing number of subscribers on fibre networks and the increased speeds from cable operators.
• The overall number of SMS has fallen steadily in recent years as consumers migrate to other applications such as Skype and WhatsApp, which enable messages to be sent via the internet.
• The government’s plans to auction spectrum in the 800MHz, 900MHz, 1800MHz, 1900MHz, 2.1GHz and 2.6GHz bands in October 2012 will include 60MHz of paired spectrum from the Digital Dividend. The new licences will run until 2030. 2x10MHz spectrum in the 800MHz band has been reserved for new players to encourage market competition.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in the Netherlands. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – privatisation, acquisitions, new licences;
• Mobile data market developments in coming years in light of spectrum auctions and new license awards expected in 2012;
• 3G developments, regulatory issues and technologies including HSPA and LTE;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts;
• ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Key Statistics
• 2. Telecommunications Market
  • 2.1 Overview of the Netherlands’ telecom market
• 3. Regulatory Environment
  • 3.1 History
    • 3.1.1 EU regulatory framework
    • 3.1.2 Revised NFR
  • 3.2 Regulatory authority
    • 3.2.1 Netherlands Post and Telecommunications Authority (OPTA)
  • 3.3 Authority for Consumers and Markets (ACM)
  • 3.4 Telecom sector liberalisation in the Netherlands
    • 3.4.1 Privatisation of KPN Nederland
    • 3.4.2 Interconnect
    • 3.4.3 Access
    • 3.4.4 Number Portability (NP)
    • 3.4.5 Carrier PreSelection (CPS)
• 4. Fixed Network Operators in the Netherlands
  • 4.1 Overview of operators
    • 4.1.1 Royal Koninklijke PTT Nederland (KPN)
    • 4.1.2 UPC Nederland
    • 4.1.3 Scarlet Telecom
    • 4.1.4 Tele2 Netherlands
    • 4.1.5 Ziggo
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
  • 5.2 International infrastructure
  • 5.3 Regulatory issues
  • 5.4 Wholesaling
    • 5.4.1 Wholesale Line Rental (WLR)
• 6. Broadband Market
  • 6.1 Fixed Broadband Market
    • 6.1.1 Overview
    • 6.1.2 Wholesale broadband access
    • 6.1.3 Broadband statistics
    • 6.1.4 Government support
    • 6.1.5 Broadband and smart grids
    • 6.1.6 Cable modems
    • 6.1.7 Asymmetrical Digital Subscriber Line (ADSL)
    • 6.1.8 Fibre-to-the-Home (FttH) networks
    • 6.1.9 Wholesale fibre
    • 6.1.10 Open Access Model
    • 6.1.11 KPN
    • 6.1.12 Other operators
    • 6.1.13 Broadband Powerline (BPL)
  • 6.2 Wireless broadband
    • 6.2.1 Wireless Local Loop (WLL)
    • 6.2.2 Wireless LANS/WiFi
    • 6.2.3 Brief provider overview
    • 6.2.4 WiMAX
    • 6.2.5 Mobile broadband
    • 6.2.6 Internet via satellite
• 7. Digital Media
  • 7.1 Key general trends
  • 7.2 Business models
    • 7.2.1 Bundled services
  • 7.3 Regulatory issues
    • 7.3.1 Background
    • 7.3.2 VoIP
    • 7.3.3 VoD
    • 7.3.4 Cable tariffs
  • 7.4 Digital TV
    • 7.4.1 Overview
    • 7.4.2 Digital Terrestrial TV (DTTV)
    • 7.4.3 Free-to-Air (FTA) TV
    • 7.4.4 Interactive TV (iTV)
    • 7.4.5 TV-over-DSL (IPTV)
    • 7.4.6 Video-on-Demand (VoD)
    • 7.4.7 VoIP
    • 7.4.8 Cable TV
    • 7.4.9 Satellite TV
• 8. Mobile Communications
  • 8.1 Overview of the Netherlands’ mobile market
    • 8.1.1 Mobile statistics
    • 8.1.2 Operator market shares
  • 8.2 Regulatory issues
    • 8.2.1 Spectrum regulations and spectrum auctions
    • 8.2.2 Mobile termination rates (MTRs)
    • 8.2.3 Mobile number portability (MNP)
    • 8.2.4 Roaming
    • 8.2.5 Network neutrality
  • 8.3 Mobile technologies
    • 8.3.1 Digital
    • 8.3.2 Third Generation (3G) mobile
  • 8.4 Major mobile operators
    • 8.4.1 KPN
    • 8.4.2 Vodafone
    • 8.4.3 T-Mobile
    • 8.4.4 Mobile Virtual Network Operators (MVNOs)
  • 8.5 Mobile voice services
    • 8.5.1 Prepaid
    • 8.5.2 Satellite mobile
    • 8.5.3 Mobile VoIP
  • 8.6 Mobile Messaging
    • 8.6.1 SMS
    • 8.6.2 Multimedia Messaging Services (MMS)
  • 8.7 Mobile data services
    • 8.7.1 General Packet Radio Services (GPRS)
    • 8.7.2 Push-to-Talk (PTT)
    • 8.7.3 Enhanced Data rates for GSM Evolution (EDGE)
    • 8.7.4 High-Speed Packet Access (HSPA)
    • 8.7.5 Evolved HSPA (HSPA+)
    • 8.7.6 Long-term Evolution (LTE)
    • 8.7.7 Location-based services (LBS)
    • 8.7.8 Near Field Communication (NFC)
    • 8.7.9 Mobile TV
• 9. Forecasts
  • 9.1 Forecasts – broadband subscribers – 2010 - 2013; 2020
    • 9.1.1 Scenario 1 – higher broadband subscriber growth
    • 9.1.2 Scenario 2 – lower broadband subscriber growth
  • 9.2 Forecasts – mobile ARPU – 2005 - 2010; 2015
  • 9.3 Forecasts – UMTS subscribers – 2006 - 2015
    • 9.3.1 Notes on scenario forecasts
• 10. Glossary of Abbreviations

• Table 1 – Country statistics – 2011 (e)
• Table 2 – Telephone network statistics – 2012 (e)
• Table 3 – Internet user statistics – 2012 (e)
• Table 4 – Broadband statistics – 2012 (e)
• Table 5 – Mobile statistics – 2012 (e)
• Table 6 – National telecommunications authorities
• Table 7 – Fixed lines in services by type – 2006 - 2012
• Table 8 – KPN MDF broadband accesses – 2005 - 2012
• Table 9 – Unbundled MDF connections by type – 2008 - 2011
• Table 10 – Cumulative mobile numbers ported – 2002 - 2009
• Table 11 – CPS subscribers and WLR lines – 2008 - 2011
• Table 12 – Fixed-line revenue (PSTN, VoB) – 2006 - 2012
• Table 13 – Fixed-line traffic by type – 2008 - 2013
• Table 14 – Fixed-line traffic revenue – 2006 - 2013
• Table 15 – KPN net line loss – 2005 - 2012
• Table 16 – KPN network channels (consumer), PSTN, ISDN, VoIP – consumer – 2005 - 2012
• Table 17 – KPN consumer market share by sector – 2007 - 2012
• Table 18 – KPN subscribers by sector (consumer) – 2005 - 2012
• Table 19 – KPN Group financial data – 2004 - 2012
• Table 20 – KPN financial data by sector (Netherlands) – 2005 - 2012
• Table 21 – UPC Nederland subscribers – 2005 - 2012
• Table 22 – UPC Netherlands revenue and annual change – 2005 - 2012
• Table 23 – Tele2 Netherlands residential subscribers by type – 2007 - 2012
• Table 24 – Tele2 Netherlands revenue by type – 2007 - 2012
• Table 25 – Ziggo financial data – 2006 - 2012
• Table 26 – Ziggo financial data – 2006 – 2012
• Table 27 – Ziggo subscriber data – 2007 - 2012
• Table 28 – Fixed lines in service and teledensity – 1999 - 2013
• Table 29 – Unbundled MDF connections by type – 2008 - 2011
• Table 30 – Broadband market share by major ISP – 2009 - 2011
• Table 31 – Broadband household and IP-VPN penetration – 2002 - 2012
• Table 32 – Broadband retail subscribers (cable modem, xDSL, fibre) – 1999 - 2012
• Table 33 – Broadband market share by technology – 2008 - 2012
• Table 34 – Broadband connections by speed, cable and DSL (thousand lines) – 2010 - 2011
• Table 35 – Proportion of broadband retail connections by speed – 2010 - 2011
• Table 36 – Broadband penetration rate – 1999 - 2012
• Table 37 – Broadband penetration by technology – 2007 - 2011
• Table 38 – Netherlands internet bandwidth – 1999 - 2012
• Table 39 – Cable modem subscribers – 2000 - 2013
• Table 40 – Ziggo financial data – 2006 - 2012
• Table 41 – Ziggo financial data – 2006 – 2012
• Table 42 – Ziggo subscriber data – 2007 - 2012
• Table 43 – UPC Nederland subscribers – 2005 - 2012
• Table 44 – UPC Netherlands revenue and annual change– 2005 - 2012
• Table 45 – KPN consumer retail broadband subscribers by ISP – 2007 - 2012
• Table 46 – DSL market share of broadband subscribers – 2004 - 2012
• Table 47 – ADSL subscribers – 2000 - 2013
• Table 48 – Tele2 DSL subscribers – 2006 - 2012
• Table 49 – KPN MDF broadband accesses – 2005 - 2012
• Table 50 – FttH connections and subscribers – 2006 - 2012; 2015
• Table 51 – Regulated LLU tariffs, by access network
• Table 52 – KPN/Reggefiber FttX connections and homes passed – 2009 - 2012
• Table 53 – Mobile broadband subscribers via laptops – 2009 - 2012
• Table 54 – Bundled services subscribers – 2008 - 2011
• Table 55 – KPN subscribers with bundled services – 2008 - 2012
• Table 56 – Digital TV subscription market share by operator – 2010 – 2011
• Table 57 – Digital TV distribution infrastructure market share – 2003 – 2011
• Table 58 – TV retail revenue by platform – 2006 – 2012
• Table 59 – Digitenne subscribers – 2006 - 2012
• Table 60 – IPTV households – 2010 - 2012
• Table 61 – KPN IPTV subscribers – 2008 - 2012
• Table 62 – VoIP subscribers – 2005 - 2012
• Table 63 – KPN VoIP subscribers – 2005 - 2012
• Table 64 – Cable TV subscribers by type – 2008 - 2011
• Table 65 – Cable TV households and penetration – 2008 - 2011
• Table 66 – UPC Nederland cable TV subscribers – 2005 - 2012
• Table 67 – UPC Netherlands revenue and annual change (US$) – 2005 - 2012
• Table 68 – Ziggo cable TV subscribers – 2007 - 2012
• Table 69 – Satellite TV households and household penetration – 2002 – 2011; 2015
• Table 70 – Mobile services market revenue – 2006 - 2013
• Table 71 – Mobile operators, subscribers and annual change – 2011
• Table 72 – Total mobile (SIM) subscribers and penetration rate (regulator data) – 1999 - 2013
• Table 73 – Total mobile traffic – 2007 - 2013
• Table 74 – Mobile revenue by service – 2008 - 2012
• Table 75 – Market share of subscribers by operator – 2006 - 2011
• Table 76 – 3G licence awards (spectrum, spectrum fees and admin fees) – July 2000
• Table 77 – MTRs – 2006 - 2008
• Table 78 – MTRs – 2009 - 2012
• Table 79 – Wholesale termination revenue – 2007 - 2012
• Table 80 – Cumulative mobile numbers ported – 2003 - 2009
• Table 81 – European roaming charges – 2007 - 2012
• Table 82 – KPN mobile subscribers – 1998 - 2012
• Table 83 – KPN Mobile consumer retail and wholesale subscribers – 2006 - 2012
• Table 84 – KPN international mobile service revenue by operator – 2006 - 2012
• Table 85 – KPN mobile monthly ARPU – 2006 - 2012
• Table 86 – Vodafone Netherlands financial data – 2007 - 2011
• Table 87 – Vodafone Netherlands subscribers – 2004 - 2011
• Table 88 – Vodafone Netherlands ARPU – 2004 - 2011
• Table 89 – Vodafone Netherlands voice minutes – 2004 - 2011
• Table 90 – T-Mobile Netherlands subscribers – 2006 - 2012
• Table 91 – T-Mobile Netherlands financial data – 2006 - 2012
• Table 92 – T-Mobile Netherlands ARPU – 2006 - 2012
• Table 93 – MVNO subscribers – 2005 - 2013
• Table 94 – Tele2 mobile subscribers – 2007 - 2012
• Table 95 – Prepaid and contract subscribers by market share – 2008 - 2011
• Table 96 – Prepaid and contract subscribers – 2007 - 2011
• Table 97 – KPN Mobile non-voice proportion of ARPU – 2004 - 2011
• Table 98 – SMS and data revenue – 2008 - 2012
• Table 99 – SMS traffic – 2008 - 2013
• Table 100 – Data traffic – 2008 - 2013
• Table 101 – Forecast broadband subscribers – higher market growth scenario – 2010 - 2013; 2020
• Table 102 – Forecast broadband subscribers – lower market growth scenario – 2010 - 2013; 2020
• Table 103 – Forecast mobile ARPU – 2005 - 2010; 2015
• Table 104 – Forecast UMTS subscribers – 2006 - 2015

• Chart 1 – Fixed lines in services by type – 2006 – 2012
• Chart 2 – Unbundled MDF connections by type – 2008 – 2011
• Chart 3 – Fixed-line revenue (PSTN, VoB) – 2006 – 2012
• Chart 4 – Fixed-line traffic by type – 2008 – 2013
• Chart 5 – KPN network channels (consumer), PSTN, ISDN, VoIP – consumer – 2005 – 2012
• Chart 6 – KPN subscribers by sector (consumer) – 2005 – 2012
• Chart 7 – KPN Group financial data – 2004 – 2012
• Chart 8 – KPN financial data by sector (Netherlands) – 2005 – 2012
• Chart 9 – UPC Nederland subscribers – 2005 – 2012
• Chart 10 – Tele2 Netherlands residential subscribers by type – 2007 – 2012
• Chart 11 – Tele2 Netherlands revenue by type – 2007 – 2012
• Chart 12 – Ziggo operating and subscriber data – 2007 – 2011
• Chart 13 – Unbundled MDF connections by type – 2008 – 2011
• Chart 14 – Broadband subscribers (cable modem, xDSL, fibre) – 2002 – 2012
• Chart 15 – Broadband market share by technology – 2009 – 2012
• Chart 16 – Ziggo operating and subscriber data – 2007 – 2012
• Chart 17 – UPC Nederland subscribers – 2005 – 2012
• Chart 18 – Digital TV distribution infrastructure market share – 2003 – 2011
• Chart 19 – Cable TV subscribers by type – 2008 – 2011
• Chart 20 – UPC Nederland cable TV subscribers – 2005 – 2012
• Chart 21 – Ziggo cable TV subscribers – 2007 – 2012
• Chart 22 – Total mobile (SIM) subscribers and penetration rate (regulator data) – 1999 – 2013
• Chart 23 – Market share of subscribers by operator – 2006 – 2011
• Chart 24 – KPN Mobile consumer retail subscribers – 2006 – 2012
• Chart 25 – KPN international mobile service revenue by operator – 2006 – 2012
• Chart 26 – Vodafone Netherlands financial data – 2007 – 2011
• Chart 27 – T-Mobile Netherlands financial data – 2006 – 2012
• Chart 28 – MVNO subscribers – 2005 – 2013
• Chart 29 – Prepaid and contract subscribers – 2007 – 2011
• Chart 30 – SMS and data revenue – 2008 – 2012

• Exhibit 1 – EU – The New Regulatory Framework (NRF)
• Exhibit 2 – Fixed-to-mobile interconnections tariffs – 2007 - 2009
• Exhibit 3 – Access and the local loop
• Exhibit 4 – Plan of action and targets – 2003 - 2015
• Exhibit 5 – Overview of digital media
• Exhibit 6 – 2.6GHz spectrum auction – April 2010
• Exhibit 7 – Premium SMS market feature overview by operator – 2010