2016 Netherlands - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Netherlands’ all-in-one market bolstered by VodafoneZiggo joint venture

The Dutch telecom market has one of the most mature broadband sectors in the world, with effective cross-platform competition. DSL infrastructure provides national coverage while the HFC sector, dominated by the newly created joint venture VodafoneZiggo, reaches about 95% of households. In addition there is a strong and rapidly growing fibre sector, with the networks of the incumbent telco KPN being supplemented by a number of municipal projects.

KPN has also launched ‘Vplus’ technologies with the expectation of delivering data at up to 400Mb/s with future upgrades, while Liberty Global, joint owner of VodafoneZiggo, is at the forefront in deploying cable services based on the DOCSIS3.1 standard, capable of delivering data at more than 1Gb/s. The market share held by DSL, once the dominant platform, has fallen consistently for several years as customers migrate to faster cable and fibre-based networks. The market share held by DSL, once the dominant platform, has fallen consistently for several years as customers migrate to faster cable and fibre-based networks. By early 2017 fibre accounted for more than 16% of all fixed-line broadband connections.

There is also strong competition in the mobile sector. Competitive pressure once encouraged Deutsche Telekom to consider selling its T-Mobile Netherlands unit, though this unit has been strengthened by the acquisition in late 2016 of Vodafone Netherlands’ fixed-line business. As a result, T-Mobile Netherlands unit is now also able to offer quad-play services and provide more effective competition to KPN.

The number of mobile subscribers in the Dutch market has continued to grow strongly, though much of this growth can be attributed to the M2M and mobile broadband sectors. Slower growth in traditional SIM cards is partly the result of higher mobile penetration and also to competition on pricing which has meant that subscribers have less cause to acquire SIM cards from different providers to capitalise on cheaper on-net tariffs.

In common with other European markets, the LTE sector is the main driver, supported by the combination of high smartphone penetration, competitive pricing for mobile data bundles, and the universal coverage of LTE networks provided by the network operators. In some rural areas with poor fixed-line broadband coverage MNOS offer LTE services as a fixed broadband replacement. In addition, a 5G research platform was set up in late 2016 as a test bed for future applications and services based on the anticipated 5G standard.

This report details the key aspects of the Dutch telecoms market. It provides updated data on fixed network services, profiles the major operators, and reviews the key regulatory issues including interconnection, local loop unbundling, number portability, carrier preselection, and provisions for competitor access to cable and fibre infrastructure. The report also provides statistics and analyses on the mobile market, including regulatory issues and an assessment of emerging mobile data services and technologies. In addition the report covers the digital TV and videostreaming sectors as well as the fixed-line and wireless broadband sectors. It assesses operator strategies in relation to technologies including vectoring VDSL, FttP and DOCSIS3.1, analyses regulatory measures affecting network access, and provides broadband subscriber forecasts for selective years through to 2021.

Key developments:

• KPN extends vectoring VDSL on a wholesale basis, upgrades FttP to 1Gb/s in select areas and expands trials of Vplus technology;
• Ziggo invests in DOCSIS3.1 technology;
• Ziggo and Vodafone complete joint venture as VodafoneZiggo;
• Ziggo deploys Wi-Fi hotspots to thousands of street cabinets;
• Government kicks-starts €90 million smart infrastructure project to manage traffic;
• KPN reports continuing slide in revenue for 2016;
• T-Mobile Netherlands launches quad-play offer, launches Knippr’ OTT service;
• T-Mobile launches ‘4G For Home’ solution;
• KPN expecting to offer commercial LTE-M services by end-2017;
• MNOs begin refarming 3G spectrum in the 2100MHz and 2600MHz bands for LTE use;
• T-Mobile Netherlands launches CA LTE-A services;
• Report update includes the regulator’s market data to Q2 2016, telcos’ operating and financial data to Q4 2016, recent market developments.

Companies mentioned in this report:

KPN, UPC Netherlands, Tele2 Netherlands, Stipte (Scarlet Telecom), Ziggo, Reggefiber, Digitenne, Nozema, Vodafone Netherlands, Tele2 Netherlands, Canal Digitaal, Telfort, Orange Netherlands, Versatel, T-Mobile Netherlands.