The Netherlands - Telecommunication Services: Strong market adaptable to technological innovation (Strategy, Performance and Risk Analysis)
This report offers an in depth analysis of the Dutch telecommunication market, exploring current and forecast tends of the market’s segments, an overview of key developments and a comparative look into the growth of the industry. In terms of innovation, the telecom market in the Netherlands is considered strong, with ample opportunity for business and investments. Readers can find further information detailing the Dutch telecom’s key strengths and weaknesses, along with much more, in the report.
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Decreasing voice revenue: a major concern
Low-tariff strategies by operators in a bid to gain market shares and increase the demand for data/internet services, such as Pay-TV, has led to the decline in voice revenue.
Voice revenue has decreased at 8.5% CAGR for 2012-16 from US$2,006.7 million in 2012 to US$1,404.8 million in 2016, and is expected to further decrease at 0.3% CAGR for 2016-21 to US$1,383.0 million in 2021. Data and internet accounts for over 59% of total telecom revenue in 2016 and is expected to account for 66% share by 2021..
Operators consolidating their operations
The fall in revenue, especially in the voice segment, has led companies to consolidate their operations to obtain higher levels of synergy. The merger of UPC with Ziggo and the 50:50 joint venture between Ziggo and Vodafone Netherlands are examples of this consolidation.
Broadband penetration boosted by fiber networks
Fixed voice and broadband penetration has seen consistent growth in the last few years. Fixed voice subscriptions increased at 1.4% CAGR, from 6.9 million in 2012 to 7.3 million in 2016, and are expected to increase at 1.3% CAGR, to 7.8 million in 2021. The trend is expected to continue, with penetration reaching 44% in 2021. Broadband subscriptions increased at 2.4% CAGR, from 6.6 million in 2012 to 7.3 million in 2016 and are expected to increase at 1.3% CAGR, to 7.8 million in 2021.
VoIP subscriptions increased at 8.7% CAGR for 2012-16 from 4.1 million in 2012 to 6.1 million in 2016, and are expected to increase at 3.82% CAGR during 2016-21 to 7.4 million in 2021.