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Netherlands - Telecoms, IP Networks and Digital Media

This annual report provides a comprehensive overview of trends and developments in the Dutch telecommunications market. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:

Key statistics;

  • Market and industry overviews;
  • Industry and regulatory issues;
  • Major players (fixed, mobile and broadband);
  • Mobile voice and data markets;
  • Internet and broadband development;
  • Convergence (voice/data, fixed/wireless/mobile);
  • Telecom market forecasts for selective years to 2015 or 2020.Researcher:- Henry LancasterCurrent publication date:- June 2010 (9th Edition)Next publication date:- June 2011


BuddeComm’s annual publication, Netherlands - Telecoms, IP Networks and Digital Media, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors in this leading market.

The Dutch telecom market has one of the most developed infrastructures in Europe, providing a solid foundation for emerging bundled services offerings. The vast majority of the population uses the Internet, while broadband uptake - among the highest in the world - has benefited from government support as well as competing cable and DSL platforms. FttH networks are also a significant feature of the country’s broadband landscape, with an effective collaboration between national, regional and municipal governments working with industry and academic institutions to ensure that the country maintains its broadband lead into the fibre age. Although the majority of fibred homes lie in a small number of major towns, the sector has been stimulated by consumer demand for fast Internet connections as well as the recognition that such infrastructure is paramount for socio-economic prosperity and development. As such, dozens of smaller networks as expected to be developed by the end of the decade.

The government has hitherto maintained that the market is primarily responsible for the development of broadband infrastructure, though it has focussed on stimulating competition and new service development as well as on public/private partnerships. While the regulator favours an infrastructure facilities-based regulatory regime between telcos and cablecos to stimulate competition, this will need adjustment in relation to the development of FttH infrastructure since there remains insufficient economic viability for multiple fibre networks outside the major cities. As such FttH penetration has not progressed beyond about 15%, since most consumers do not perceive the extra value of higher-cost fibre against the existing excellent cable and upgraded DSL offerings. Stimulating fibre infrastructure is thus a continuing concern as the country moves forward.

Mobile penetration stood at about 130% in early 2010. The success in this sector in coming years will largely rest on strong competition among the network operators and the range of MVNOs which has kept consumer prices low. Operators have shifted their focus on migrating prepaid subscribers to contract plans, and while SMS is the most popular mobile data service the main players have invested in software upgrades to stimulate high-end data services. The auction of 2.6GHz spectrum licences in mid-2010 saw the introduction of a new player in the mobile market - Ziggo 4 - which will allow the main cablecos Ziggo and UPC to deploy and run telecom and broadcast networks and so complement their existing bundled services (based on fixed-line access) with mobile voice and broadband offers. This is a welcome re-entry for the cablecos in the Dutch mobile market, for both of them had operated MVNO services until scrapping them due to low customer take-up.

Netherlands - key telecom parameters - 2009, 2011
Sector | 2009 | 2011 (e) |
Broadband |
Fixed broadband subscribers (million) | 6.01 | 6.84 |
Fixed broadband penetration rate | 37% | 47% |
Subscribers to telecoms services |
Fixed-line telephony (million) | 7.27 | 7.55 |
SIM cards in service (million) | 20.5 | 23.8 |
SIM penetration (population) | 123% | 1335 |
(Source: BuddeComm)
 Market highlightsThe excellent cross-platform infrastructure in the Netherlands has helped to propel the country to the top of the international league tables for broadband penetration. KPN’s DSL network reaches 99% of all homes while cable networks reach 95%. DSL commands about 56% of broadband connections and cable 40%. The DSL base is set to fall in coming years, as the numerous municipal fibre networks increase their geographic reach, and lead to increased customer churn.Fibre infrastructure is the country’s strong card, acting as a foundation and stimulus for the country’s budding transactor developments and serving as a model for strategies in other European countries. The regulator was among the first in the world to institute an effective wholesale regime, guaranteeing other telcos with non-discriminatory access to the incumbent’s network at fixed rates. Similar regulation which opened the cable networks to access to third parties will further stimulate competition in coming years.Mobile data revenues are comparatively low in the Netherlands, representing only about 5% of total mobile revenue. About half the subscriber bases spend next to nothing on mobile data services, usually because of the cost involved. To address this reticence among consumers mobile operators have introduced flat-fee offers. Stimulated by the plethora of paid applications made available through competing mobile operating platforms, operators expect mobile data to breach 30% of total revenue by the end of 2011.Mobile TV was launched in late 2009 by MTVNL, competing directly with KPN’s Mobiel TV service which uses the DVB-H standard. The Netherlands remains one of the few countries where DMB and DVB-H compete with each other. National coverage should be reached by 2015. Although the uptake has been slow, events such as the football world cup and the 2012 Olympics may stimulate mobile TV use and push it as a mainstream rather than frivolous activity.For those needing high level strategic information and objective analysis on the telecommunications sector in the Netherlands, this report is essential reading and gives further information on:

Developments in the digital broadcast market, IPTV and VoD;
Market liberalisation and regulatory issues;
The impact of the global economic crisis;
Telecoms operators - privatisation, acquisitions, new licences;
Internet and broadband development and growth;
VoIP, IPTV, VoD, digital TV and DTTV;
Average Revenue per User (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.

1. Key Statistics
2. Telecommunications Market
2.1 Overview of the Netherlands’ telecom market
3. Regulatory Environment
3.1 History
3.2 EU regulatory framework
3.3 Regulatory authority
3.3.1 Netherlands Post and Telecommunications Authority (OPTA)
3.4 Telecom sector liberalisation in the Netherlands
3.4.1 Privatisation of KPN Nederland
3.4.2 Interconnect
3.4.3 Access
3.4.4 Number Portability (NP)
3.4.5 Carrier PreSelection (CPS)
4. Fixed Network Market
4.1 Overview of operators
4.1.1 Royal Koninklijke PTT Nederland (KPN)
4.1.2 UPC Nederland
4.1.3 Scarlet Telecom
4.1.4 Tele2 Netherlands
4.1.5 Ziggo
5. Telecommunications Infrastructure
5.1 National telecom network
5.2 International infrastructure
5.3 Regulatory issues
5.3.1 Wholesaling
5.3.2 Wholesale Line Rental (WLR)
6. Broadband Market
6.1 Fixed broadband market
6.1.1 Overview
6.1.2 Wholesale broadband access
6.1.3 Broadband statistics
6.1.4 Government support
6.1.5 Broadband and smart grids
6.2 Cable modems
6.2.1 Market overview
6.2.2 Ziggo
6.2.3 UPC Nederland
6.3 Asymmetrical Digital Subscriber Line (ADSL)
6.3.1 Market overview and statistics
6.3.2 Leased lines
6.3.3 ADSL2+
6.3.4 VDSL
6.3.5 Rival networks
6.4 Fibre-to-the-Home (FttH) networks
6.4.1 Market overview
6.4.2 Regulating fibre
6.4.3 Helping muni fibre
6.4.4 Fibre and trans-sector policies
6.4.5 Needing a national approach
6.4.6 Wholesale fibre
6.4.7 Open Access Model
6.4.8 KPN
6.4.9 Glashart
6.4.10 Other operators
6.4.11 Government, councils and telcos involved
6.4.12 FttH competition
6.4.13 All-IP network regulations
6.5 Broadband Powerline (BPL)
6.6 Wireless broadband
6.6.1 Wireless Local Loop (WLL)
6.6.2 Wireless LANS/WiFi
6.6.3 Brief provider overview
6.6.4 WiMAX
6.6.5 Mobile broadband
6.6.6 Internet via satellite
7. Digital Media
7.1 Key general trends
7.2 Business models
7.2.1 Triple play
7.3 Regulatory issues
7.3.1 Background
7.3.2 VoIP
7.3.3 Cable tariffs
7.4 Digital TV
7.4.1 Overview
7.4.2 Digital Terrestrial TV (DTTV)
7.4.3 Free-to-Air (FTA) TV
7.4.4 Interactive TV (iTV)
7.4.5 TV-over-DSL (IPTV)
7.4.6 Video-on-Demand (VoD)
7.4.7 Personal Video Recorders (PVRs)
7.4.8 VoIP
7.4.9 Cable TV
7.4.10 Satellite TV
8. Mobile Communications
8.1 Overview of the Netherlands’ mobile market
8.1.1 Mobile statistics
8.1.2 Operator market shares
8.2 Regulatory issues
8.2.1 Spectrum regulations and spectrum auctions
8.2.2 Mobile termination rates (MTRs)
8.2.3 Mobile number portability (MNP)
8.2.4 Roaming
8.3 Mobile technologies
8.3.1 Digital
8.3.2 Third Generation (3G) mobile
8.4 Major mobile operators
8.4.1 KPN
8.4.2 Vodafone
8.4.3 T-Mobile
8.4.4 .mobi domain name
8.4.5 Mobile Virtual Network Operators (MVNOs)
8.5 Mobile voice services
8.5.1 Prepaid
8.5.2 Satellite mobile
8.5.3 Mobile VoIP
8.6 Mobile Messaging
8.6.1 SMS
8.6.2 Multimedia Messaging Services (MMS)
8.7 Mobile data services
8.7.1 General Packet Radio Services (GPRS)
8.7.2 Push-to-Talk (PTT)
8.7.3 High-Speed Packet Access (HSPA)
8.7.4 BlackBerry
8.7.5 i-mode
8.7.6 iPhone
8.7.7 Location-based services (LBS)
8.7.8 Mobile TV
9. Forecasts
9.1 Forecasts - broadband subscribers - 2009 - 2012; 2020
9.1.1 Scenario 1 - higher broadband subscriber growth
9.1.2 Scenario 2 - lower broadband subscriber growth
9.2 Forecasts - mobile ARPU - 2009 - 2010; 2015
9.3 Forecasts - UMTS subscribers - 2009 - 2015
10. Glossary of Abbreviations
Table 1 - Country statistics Netherlands - 2009
Table 2 - Telephone network statistics - 2009
Table 3 - Internet user statistics - 2009
Table 4 - Broadband statistics - 2009
Table 5 - Mobile statistics - 2009
Table 6 - National telecommunications authorities
Table 7 - Telecom market turnover - 2006 - 2009
Table 8 - Unbundled loops and access lines - 2006 - 2009
Table 9 - LLU, shared access price - connection and monthly rental - 2005 - 2008
Table 10 - KPN access and LLU lines - 2008 - 2010
Table 11 - Cumulative mobile numbers ported - 2002 - 2008
Table 12 - Households with fixed telephony, market share by operator - 2004 - 2009
Table 13 - KPN net line loss - 2006 - 2010
Table 14 - KPN network channels, PSTN, ISDN, VoIP - consumer - 2005 - 2010
Table 15 - KPN consumer market share by sector - 2007 - 2010
Table 16 - KPN subscribers by sector (consumer) - 2005 - 2010
Table 17 - KPN Group financial data - 2004 - 2010
Table 18 - KPN financial data by sector (Netherlands) - 2005 - 2010
Table 19 - UPC Nederland statistics per market segment - 2006 - 2010
Table 20 - UPC Netherlands revenue and annual change - 2005 - 2010
Table 21 - Tele2 Netherlands residential subscribers by type - 2007 - 2010
Table 22 - Tele2 Netherlands revenue by type - 2007 - 2010
Table 23 - Ziggo financial data - 2006 - 2009
Table 24 - Ziggo operating and subscriber data - 2006 - 2009
Table 25 - Fixed lines in service and teledensity - 1995; 1997; 1999 - 2011
Table 26 - Broadband household and IP-VPN penetration - 2002 - 2011
Table 27 - Broadband market share by major ISP - 2009 - 2010
Table 28 - Broadband penetration in Internet households - 2004 - 2011
Table 29 - Broadband subscribers (cable modem, xDSL, fibre) - 1999 - 2010
Table 30 - Broadband market share by technology - 2009 - 2010
Table 31 - Broadband penetration rate - 1999 - 2009
Table 32 - Broadband penetration by technology - 2007 - 2009
Table 33 - Cable modem subscribers - 2000 - 2011
Table 34 - Ziggo financial data - 2006 - 2009
Table 35 - Ziggo operating and subscriber data - 2006 - 2009
Table 36 - UPC Nederland subscribers - 2005 - 2010
Table 37 - UPC Netherlands revenue and annual change - 2005 - 2010
Table 38 - KPN consumer retail broadband subscribers by ISP - 2007 - 2010
Table 39 - DSL market share of broadband subscribers - 2004 - 2011
Table 40 - ADSL subscribers - 2000 - 2011
Table 41 - Tele2 DSL subscribers - 2006 - 2010
Table 42 - Analogue/digital leased line use (historical) - 2003 - 2005
Table 43 - Leased line by capacity - September 2008
Table 44 - KPN broadband accesses - 2005 - 2010
Table 45 - FttH connections and subscribers - 2006 - 2009; 2014
Table 46 - FttH homes passed and subscribed, by municipality - March 2009
Table 47 - Proportion of households with products from a single provider - 2005 - 2009
Table 48 - KPN subscribers with bundled services - 2008 - 2010
Table 49 - Digital TV subscriptions by operator - 2008 - 2009
Table 50 - TV statistics per market segment - 2005 - 2009
Table 51 - Digital TV distribution infrastructure market share - 2003 - 2009
Table 52 - TV subscription market share by platform - March 2010
Table 53 - Digitenne TV subscribers - 2006 - 2010
Table 54 - VoIP subscribers - 2005 - 2010
Table 55 - KPN VoIP subscribers - 2005 - 2010
Table 56 - UPC Nederland statistics per market segment - 2006 - 2010
Table 57 - UPC Netherlands revenue and annual change - 2005 - 2010
Table 58 - Ziggo operating and subscriber data - 2006 - 2009
Table 59 - Satellite TV subscribers and household penetration - 2002 - 2011
Table 60 - Mobile services market - 2004 - 2011
Table 61 - Mobile operators, subscribers and annual change - 2009
Table 62 - Total mobile (SIM) subscribers and penetration rate (regulator data) - 1997; 1999 - 2011
Table 63 - Market share of subscribers by operator - 2006 - 2009
Table 64 - 3G licence awards (spectrum, spectrum fees and admin fees) - July 2000
Table 65 - Mobile termination tariffs - 2006 - 2008
Table 66 - Proposed mobile termination tariffs - 2009 - 2012
Table 67 - Cumulative mobile numbers ported - 2002 - 2008
Table 68 - European roaming charges - 2007 - 2012
Table 69 - KPN mobile subscribers by country - 1998 - 2010
Table 70 - KPN Mobile consumer retail subscribers - 2006 - 2010
Table 71 - KPN mobile service revenue by operator - 2006 - 2010
Table 72 - KPN mobile monthly ARPU - 2006 - 2010
Table 73 - Vodafone Netherlands financial data - 2007 - 2009
Table 74 - Vodafone Netherlands operating statistics - 2004 - 2009
Table 75 - T-Mobile (Netherlands) operating statistics - 2006 - 2009
Table 76 - MVNO subscribers - 2005 - 2011
Table 77 - Tele2 mobile subscribers - 2007 - 2010
Table 78 - Prepaid and contract subscribers by market share - 2004 - 2009
Table 79 - KPN Mobile retail prepaid subscribers - 2006 - 2010
Table 80 - KPN Mobile net adds: prepaid/contract - 2006 - 2010
Table 81 - KPN Mobile non-voice proportion of ARPU - 2004 - 2010
Table 82 - KPN’s i-mode subscribers (historical) - 2002 - 2005
Table 83 - Forecast broadband subscribers - higher market growth scenario - 2007 - 2012; 2020
Table 84 - Forecast broadband subscribers - lower market growth scenario - 2007 - 2012; 2020
Table 85 - Forecast mobile ARPU - 2005 - 2010; 2015
Table 86 - Forecast UMTS subscribers - 2006 - 2015
Exhibit 1 - EU - The New Regulatory Framework (NRF)
Exhibit 2 - Forecast fixed-to-mobile interconnections tariffs - 2007 - 2009
Exhibit 4 - Plan of action and targets - 2003 - 2015
Exhibit 5 - Overview of media convergence
Exhibit 6 - 2.6GHz spectrum auction - April 2010
Exhibit 7 - Premium SMS market feature overview by operator - 2010

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