Belgium Communication Profile 2012

Certain sectors of Belgium’s telecom market, such as broadcasting, are influenced by its larger neighbours France and the Netherlands. The country’s people is split between major language groups, Flemish and Walloon, with an additional strong German influence. This fragmentation affects regulatory policies. Being the base for several administrative centres of the European Union, Belgium has attracted considerable investment from multinationals, while the significant transient people has as well contributed to the high mobile penetration.

Belgium has not kept up with the top performers in the European ranking of broadband penetration. Retail prices for internet access remain relatively high, despite competition enabled by LLU. Belgacom’s VDSL2 infrastructure is now open to competitors but thus far there are few ISPs making use of the wholesale offer.

The broadband sector is likely to be a key to propping up telecom market increase during the next few years, largely from network upgrades undertaken by Belgacom and the cablecos which has resulted in rapidly expanding bundled services offerings. Belgacom is continuing to roll out its FttC network (aiming to cover additional than 70% of households), though FttH is as from now on marginal and only affects a small number of premises. The regulator has nevertheless been active in promoting FttH, which is a cornerstone of the government’s Digital Action Plan 2010-2015. In particular the regulator aims to develop a well-performing fixed national network underpinned by legislative and administrative interventions regarding the rights of way for competitors to ducts and buildings. This infrastructure is complemented by mobile broadband: to this end, a fourth 3G licence was awarded in 2011 while an imminent auction for 2.6GHz spectrum has attracted interest from operators hitherto not involved in Belgium’s telecom landscape.

The total turnover of the Belgian telecom sector has risen steadily in recent years, despite the difficulties faced by consumers and operators alike in 2009 and 2010 as a result of the economic crisis which led to lower spend. Effective competition between Belgacom and the cablecos has as well resulted in cheaper bundled service offerings. Revenue from the fixed market continues to fall slightly, year-on-year, while that from mobile markets fell sharply in 2009 before recovering since then on the back of better spend on mobile broadband services. This pattern is expected to continue in 2011 and 2012 as consumer confidence returns and economic conditions improve. Despite liquidity issues, investment in telecom networks – half encouraged by government stimulus funds – has grown year-on-year. Alternative operators have invested the major proportion of the total.

Digital TV penetration reached about-thirds of households by early 2011. Increase since 2007 has largely been due to the inclusion of DTV in bundled offers. Cable TV is the dominant pay-TV platform and is available to about 90% of households. However, less than 10% of homes subscribe to digital packages, amount of which are premium services – there is a large supply of analogue basic channels, and premium pay-TV is therefore hard to sell to subscribers. Thirty-three operators serve the market, almost amount owned by of Belgium’s financial holding companies. Before, these inter-community cable network owner/operators were the key players in the cable-TV scene. However, since 2000 broadband providers – Telenet and UPC in particular – have become the highest profile players.

Key telecom parameters – 2010; 2012

(Source: BuddeComm)

Market highlights:

• Cable TV reaches 90% of households, and most networks have been upgraded to digital. The sector has been considerably consolidated in recent years, with Telenet having purchased Interkabel and with Alé-Brutélé and other Walloon cable companies combining forces in Brussels and Wallonia under the VOO brand. UPC is the other major player. Extensive DOCSIS3.0 deployment, providing up to 120Mb/s services, has meant that cable broadband now outperforms DSL both in download speed and in subscriber increase. This development is crucial for Belgium to evolution with its networked economy, enabling customers to access network applications such as remote medical services, 3D TV, VoD, mobile TV, fast file sharing, synchronisation and government online services.
• The imminent auction for spectrum in the 2.6 GHz band will enable licensees to expand their LTE commercial services, expected to be launched during 2012. This will bolster the country's broadband availability is less densely populated areas in coming years.
• The fourth 3G licence awarded to Telenet Tecteo Bidco in late 2011 has enabled the major cable player to enter the competitive mobile market. The operator will as well acquire spectrum in the 900MHz and 1800MHz bands This will substantially boost the capabilities of networks to deliver high-end mobile data services in coming years.
• Additional than a third of broadband subscribers have data speeds of 10Mb/s or higher &ndash of the highest proportions in the EU – while a fifth have a speed equal to or above 30Mb/s: in this respect Belgium is part the leaders in the EU for very-high speed lines.
• Fibre networks are not widely available in Belgium but the technology is being targeted in multi-tenant buildings in both the residential and commercial markets. The government’s SuperFastBelgium scheme, based on a national FttH network, is being brought to fruition through regulatory measures obliging Belgacom to provide competitors access to its fibre network, inclunding favourable conditions on duct access and the installation of ducts above ground will reduce engineering costs by up to 80%. This will help extend the reach of fibre beyond the major cities.

Broadband Market

Belgium enjoying effective competition between the DSL and cable platforms, the country's broadband penetration lags behind the European leaders. Nevertheless, network investments from Telenet, deploying DOCSIS 3.0 technology, and from Belgacom with its hybrid Fibre/VDSL network, have broadened the availability of faster services, and with them the popularity of triple play offerings.

Despite Belgium enjoying effective competition between the DSL and cable platforms, the country’s broadband penetration lags behind the European leaders. Nevertheless, network investments from Telenet, deploying DOCSIS 3.0 technology, and from Belgacom with its hybrid fibre/VDSL network, have broadened the availability of faster services, and with them the popularity of triple play offerings.

This report profiles Belgium’s fixed and wireless broadband markets in 2011. It provides broadband forecasts for selective years to 2020 and also assesses developments in related technologies such as FWA, WLAN and WiFi.

Regulators approve cable wholesale offers to come into effect by late 2012; government’s Start2Surf project furnished more than 30,000 Belgians with computers and internet access in 2010; Belgacom invests in VDSL2 vectoring technology to provide at least 50Mb/s; Numéricable sells Belgium unit; regulator pursues cable network access reform; networks on track to reach national 30Mb/s connectivity by 2020; regulator’s market data for 2010; operator data to June 2011.

Digital Media Market

Belgium’s market for bundled services has grown on the back of upgraded cable and DSL infrastructure. The broadcasting sector is characterised by language variations to accommodate the French and Walloon regions. Analogue broadcasts have been switched off in the northern part of the country, to be followed by the southern part in late 2011. In this report we present a review of triple-play developments in 2011, as well as a comprehensive overview of the country’s broadcasting market. It provides statistics on the major service providers, and also notes the status of digital, cable and satellite TV.

Movistar adds VoD to quintuple-play bundle; regulator proposes opening cable networks to competitors; Belgacom launches TV Everywhere service; Numéricable sells Belgian unit; regulator’s 2010 market data; operator data to June 2011.

Belgium - Convergence - Triple Play

Belgium's triple play market has grown on the back of upgraded cable and DSL infrastructure. The broadcasting sector is characterised by language variations to accommodate the French and Walloon regions. Analogue broadcasts were switched off by March 2010.

Telecom Market

Belgium's medium-sized telecom market benefits from comprehensive DSL and cable networks, a strong cable TV sector, and effective competition in the broadband and mobile telephone markets. Broadband penetration lags behind the leading European nations but new regulatory measures to promote wholesale and bitstream access should address lingering issues.

Mobile Market - Overview

Belgium’s mobile market is served by three main operators and a growing number of MVNOs. All three MNOs have upgraded their networks with HSPA technology, while LTE trials are continuing with a view to launching commercial services in 2012. Mobile TV offerings are available but have yet to make an impression on consumers. In this report we profile Belgian’s mobile market in 2011, providing the latest statistics on the main players, as well as the most recent developments on HSPA rollouts, emerging data markets and data services such as SMS, i-mode and mobile TV. ARPU and 3G forecasts to 2015 are also provided.

Telenet Tecteo Bidco awarded fourth 20-year 3G licence; Mobistar adds mobile telephony to bundled offers; regulator approves candidates for November 2011 2.6GHz auction; Mobistar invests €36 million to replace 2G equipment with LTE-ready kit; mobile service revenue continues to fall; Proximus trials LTE in the 1.8GHz band; non-SMS mobile revenue growth outstripping SMS revenue; regulator’s market data for 2010; operator data to June 2011.