The Dutch telecom market has one of the most advanced broadband sectors in the world, with effective cross-platform competition between DSL and HFC networks further stimulated by numerous fibre deployments. There is also strong competition in the mobile sector, a factor which has obliged Deutsche Telekom to consider selling its T-Mobile Netherlands unit. A progressive digital TV platform is facing increasing pressure from a range of videostreaming services recently launched by OTT players, including Netflix. Telcos have responded with their own services in a bid to arrest customer cord cutting in preference for on-line video services.

The cable sector is dominated by UPC Netherlands and Ziggo, both owned by Liberty Global and which since March 2015 have been merged within Ziggo Group. The two companies nevertheless operate separate networks and provide separate services to customers within their respective footprints. These two players control more than 90% of the cable TV and cable broadband market, though they face competition from KPN’s Digitenne service and from the emerging videostreaming offers.

In a significant market consolidation move, Liberty Global and Vodafone Netherlands agreed to form a 50:50 joint venture, capitalising on the former’s broadband and the latter’s LTE infrastructures. The number of mobile subscribers has grown slowly in recent years, and much of this growth is due to the rapid development of the M2M sector. In common with other advanced European markets, the LTE sector is the main driver, supported by the combination of high smartphone penetration and competitive pricing for mobile data bundles.

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 have focussed on HSPA and LTE infrastructure as a basis for developing mobile data services. Deutsche Telekom in late 2015 began exploring the possibility of selling its Dutch unit, noting that the highly competitive market is moving to a platform of converged services in which it is at a disadvantage. Within the mobile sector alone T-Mobile Netherlands is facing increased pressure from smaller operators such as Ziggo, which are also providing LTE services.

Broadband penetration in the Netherlands is one of the highest in the world, the result of large-scale government and municipal investment in broadband infrastructure. KPN has extended its vectoring VDSL service while the merged UPC Netherlands and Ziggo have upgraded their networks with DOCSIS3.0, and are looking to deploy DOCSIS3.1 in coming years. This upgrade will be capable of delivering 1Gb/s services and higher. The market share held by DSL, once the dominant platform, has fallen consistently for several years as customers migrate to faster cable and fibre-based networks. By early 2016 fibre accounted for almost 13% of all fixed-line broadband connections.

Dutch telco KPN has announced plans to reduce its OPEX and CAPEX by a further EUR300 million (USD329 million) a year by 2019, having already revealed that it is on track to make savings of EUR450 million annually by the end of 2016 compared to end-2013 under its existing 2013-16 ‘Simplification’ programme. The latest announcement covers KPN’s cost-cutting plans for 2017-19, with the additional savings to primarily be realized through ‘further simplification and rationalization of back-end IT processes and systems, and network infrastructure’. The telco expects its adjusted EBITDA margin for the Netherlands to increase by at least three percentage points in the medium term, compared to 2015.

Tele2 Netherlands has contracted Nokia to supply its Flexi Zone LTE small cell products to help boost the capacity and indoor coverage of its 4G network. Commercial deployments have now begun following a successful trial of both indoor and outdoor small cells. Francois Mairey, Tele2 Netherlands announce3d that they continue to build on their LTE-Advanced network at high speed to address the growing appetite for mobile data, especially in busy locations and at peak times. Nokia is already the sole supplier for Tele2’s nationwide greenfield radio access network.

Vodafone Netherlands has revealed plans to launch both voice-over-LTE (VoLTE) and Wi-Fi calling later in 2016. The first VoLTE services are expected to be introduced in the third quarter, although an exact timeframe has not been announced. Rival operators KPN and T-Mobile Netherlands have already stated that they plan to launch VoLTE services by the end of 2016.

Key developments:

• Ziggo and Vodafone Netherlands form JV to exploit broadband and mobile capabilities; regulator’s ruling on KPN access requirements come into effect;
• EC approves KPN’s sale of Belgian unit BASE to Liberty Global’s Telenet;
• Netherlands Telecom Agency given oversight for smart meter deployments;
• KPN reports continuing slide in revenue in 2015;
• KPN extends vectoring VDSL technology; new regulator merges three market oversight entities;