Belgium - Telecommunication Services: A mature market supported by regulatory and operator initiatives which increases attractiveness (Strategy, Performance and Risk Analysis)
Although fixed revenue dominated the Belgium market in 2016, revenue is expected to be skewed towards the mobile segment over the forecast period. During this time, mobile growth will be driven by growing mobile data revenue, following the uplift of data usage and data revenue which stems from LTE adoption. Mobile subscriptions increased at a CAGR of 3.9% during 2012-2016 and are expected to increase at a CAGR of 5.9% over 2016-2021. Mobile user penetration (as % of population) was at 81.6% in 2016, and is expected to increase to 87.8% by 2021.
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Scope for broadband penetration despite saturated mobile market
Belgium, with existing and expected mobile subscriptions of 15.2 million and 20.2 million in 2016 and 2021 respectively, and penetration levels of 133.3% in 2016 (subscription as % of population), is quite saturated. Increasing adoption of Long Term Evolution (LTE) enabled devices has led to the increase in mobile data usage, evidenced by LTE subscriptions increasing at a CAGR of 181.6% during 2012-2016. Orange Belgium also plans to roll out voice-over-LTE (VoLTE) and Wi-Fi Calling across Belgium in 2017.Increase in fixed internet accounts - VoIP and broadband
Since the mobile market is quite saturated, telecom operators have focused on the fixed line market. Innovation in technology has made VoIP more affordable, leading VoIP subscriptions to increase at 5.0% CAGR from 1.5 million in 2012 to 1.8 million in 2016 and is expected to increase at 4.1% CAGR over 2016-2021 to reach 2.3 million. Moreover, government initiatives to develop fixed technologies such as fiber, vectoring and DOCSIS 3.1 have led broadband subscriptions to increase at 3.3% CAGR from 3.7 million in 2012 to 4.2 million in 2016 and are expected to increase at 1.8% CAGR to reach 4.6 million by 2021.Fixed business internet and IPTV to take charge
Internet services and IPTV are expected to drive fixed business revenue and, similar to fixed residential revenue, newer technology and internet based communication channels are expected to adversely affect business voice revenue.
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