2011 Netherlands - Telecoms, IP Networks, Digital Media and Forecasts

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.