Netherland: Netherland Communication Profile

Further market consolidation indicative of improved services and lower customer costs into 2014

The mature Dutch telecom market has one of the majority progressive broadband sectors in the world, with effective cross-platform competition stimulated by numerous fibre deployments. There is as well strong competition in the mobile sector, and a progressive digital TV platform with the services of the dominant cable companies being complemented by KPN’s Digitenne and IPTV offerings.

With the broadband penetration rate part the highest in the world, the Netherlands benefits from comprehensive DSL and cable networks and a government-stimulated emphasis on fibre network roll-outs. The acquisition by Liberty World of the remaining shares in Ziggo will provide a competitor to KPN with near national reach, stimulating each operator to upgrade their networks to avoid churn and retain their customer base. In this environment, customers can expect improved network capabilities in coming years, and competitive pricing for services.

The Dutch TV market benefits from a comprehensive cable network reaching almost all TV homes, together with upgraded DSL networks which provide IPTV services to most households. The country was the initial to complete the move to DTTV broadcasting, in late 2006. Its excellent broadband infrastructure as well forms the bedrock of popular bundled services offered by KPN and the cable services of Ziggo and UPC Nederland.

The Netherlands has continued to show increase in the mobile market. In common with other advanced European markets, the 3G and 4G sectors are the major drivers for subscriber increase, with much emphasis part operators to extend their LTE footprints nationally.

Convergence - Triple Play & Digital TV
The Dutch TV market benefits from a comprehensive cable network reaching almost all TV homes, together with upgraded DSL networks which provide IPTV services to most households. The country was the initial to complete the move to DTTV broadcasting, in late 2006. Its excellent broadband infrastructure as well forms the bedrock of popular bundled services offered by KPN and the cable duopoly of Ziggo and UPC Nederland.

This statement provides an overview of media convergence in the Netherlands, profiling the major players and covering developments in digital, cable and interactive TV inclunding services such as VoD, VoIP and IPTV.

Fibre-to-the-Home Developments
Broadband penetration is part the highest in the world, the result of government and municipal investment in broadband infrastructure together with a range of local initiatives. The country's comprehensive DSL and cable networks have thus been supplemented with wide-scale fibre deployment: financial commitments from KPN/Reggefiber, BBned and municipalities have pushed the Netherlands to the forefront of fibre infrastructure in Europe. KPN's decision to deliver FttH nationally within the next few years will further consolidate this lead, helping to place the country as the regional benchmark against which other European operators and regulators will be assessed.

Telecom Market 
The Dutch telecom market has one of the majority progressive broadband sectors in the world, with effective cross-platform competition further stimulated by numerous fibre deployments. There is as well strong competition in the mobile sector, and a progressive digital TV platform with the services of the two dominant cable companies being complemented by KPN’s Digitenne and IPTV offerings.

This statement introduces the key aspects of this market. It provides comprehensive updated data on fixed network services, profiles the major operators and overviews the key regulatory issues inclunding interconnection, local loop unbundling, number portability, carrier preselection, and the provisions for competitor access to cable and fibre infrastructure.

Mobile Market - Overview
Increase in the number of subscribers in the Dutch mobile market stalled towards the end of 2013, and has continued to slow into 2014. This reflects the maturity of the market, and high penetration. In common with other advanced European markets, the 3G and 4G sectors are the major drivers. Market revenue has as well been affected in recent quarters, mainly by regulatory measures on termination rates and roaming tariffs, inclunding on the general economic national of the country and by consumer adoption of alternative messaging services, which has reduced the volume of SMS traffic.

Following the acquisition of Orange by T-Mobile in late 2007 there are only three network operators in the market. All provide wholesale services to MVNOs and resellers, and having reached 90% people coverage on their 3G networks they have focussed on HSPA and LTE infrastructure as a basis for developing mobile data services. Continuing increase in mobile data has stimulated the MNOs to trial broadcast TV services. Additional pressure on MNOs is likely approaching from new regulations which ended the restriction by which SIM cards were owned only by MNOs, essentially paving the way for private network operators to develop M2M and other services.

This statement provides statistics and analyses on the Dutch mobile market, inclunding a review of the key operators and regulatory issues. It as well assesses emerging mobile data services such as mobile TV, and provides ARPU and 3G forecasts to 2015.