2013-08-25 09:13:59 - New Fixed Networks market report from Business Monitor International: "Netherlands Telecommunications Report Q3 2013"
The maturity of the Dutch telecommunications market means there is considerable demand for converged product packages. Thus, those operators able to offer fixed-line telephony, high-speed internet access and pay-TV, alongside mobile connectivity should - in theory - do well. However, competition in this arena is fierce and this is driving down prices. Falling revenues are therefore weighing on profit margins and operators are being forced to upscale in order to continue growing. KPN recently increased its stake in FTTH operator Reggefiber and acquired a handful of regional ISPs. Liberty Global Inc took a small stake in rival cable operator Ziggo, leaving Vodafone and T-Mobile to cast around for expansion opportunities. In the meantime, over-the-top video and messaging services continue to
proliferate, dampening demand for formal operator-billed offerings. The squeeze is expected to continue indefinitely.
* Mobile subscriber growth was negative in Q113 as operators focused on higher-value postpaid subscribers at the expense of low-value prepaid customers. Around 313,000 subscribers were lost, net, mostly at KPN Mobile, although T-Mobile also recorded a significant net subscriber loss. There were 19.611mn subscribers as of March 2013, down 1.3% y-o-y.
* Mobile ARPUs fell sharply in Q113 on the back of further mobile termination rate (MTR) cuts, which impacted on mobile service revenues. Increased pricing competition and the growing trend for mobile to be included in budget converged service packages also contributed to softening ARPUs.
* Mobile data usage rose from 66GB per customer per month in Q411 to 101.8GB per month in Q412, according to the regulator. However, mobile data ARPUs were generally flat y-o-y. More needs to be done to increase usage of operator-billed value-added services.
Full Report Details at
- www.fastmr.com/prod/670581_netherlands_telecommunications_report ..
Key Trends And Developments
At the time of writing, streamed video on demand service provider Netflix had just announced plans to enter the Dutch market. The service is expected to do well, considering the ubiquity of high-speed fixed and mobile broadband infrastructure suited to streamed video. Netflix's popularity undermines the investment made by infrastructure-centric pay-TV operators in platforms and content and it will be a challenge for KPN, T-Mobile, Ziggo and UPC to respond to the OTT provider. Ziggo has recently launched a TV everywhere service and it is this kind of product that will help operators compete effectively with the likes of Netflix. KPN also increased its stake in Reggefiber, evidently foreseeing increased uptake of video services among its FTTH clients.
T-Mobile will undoubtedly be keen to develop TV everywhere services of its own, leveraging its yet-to-belaunched 4G LTE mobile broadband network. However, the launch of services is still several months away, and even then it could take more than a year to achieve nationwide coverage. And encouraging consumers to spend more on mobile broadband than they already do will be an uphill struggle.
Nevertheless, KPN has raised the finance needed to accelerate its FTTH and 4G LTE roll-out programmes and it has brought forward its nationwide LTE coverage deadline by three months. Although this is a huge investment risk, given declining mobile service revenues, falling subscriber numbers and flat growth in nonvoice income, the operator has little choice if it is to avoid being overtaken by events and technology.
Partial Table of Contents:
BMI Industry View
- Business Environment
- Table: Telecoms Sector - Mobile - Historical Data & Forecasts
- Table: Telecoms Sector - ARPU (EUR) - Historical Data & Forecasts
- Fixed Line
- Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
Industry Risk Reward Ratings
- Western Europe Telecommunications Risk/Reward Ratings
- Table: Western Europe Risk/Reward Ratings, Q313
- Netherlands Risk/Reward Ratings
- Table: Netherlands Mobile Market Regional Comparisons, 2012
- Key Developments
- Mobile Growth
- Market Shares
- Table: Netherlands Mobile Subscriptions Q112-Q113 ('000)
- Subscription Mix
- Usage (ARPU/MOU)
- Mobile Content
- Mobile Operator Data
- Table: Market Overview
- Table: KPN
- Table: T-Mobile
- Table: Vodafone
- Western Europe Mobile Content
- Financialising Footfall
- Interoperable M-Commerce A Stronger Proposition
- Positioning Key To M2M Success
- Fixed Line
- Table: Netherlands Retail Broadband Connections By Technology ('000)
- Operator Subscription Shares
- Converged Service Operator Tables
- Table: KPN
- Table: UPC Netherlands
- Table: Ziggo
Industry Trends And Developments
- Table: Netherlands: Regulatory Bodies And Their Responsibilities
- Market Analyses
- Table: Additional Spectrum Allocations, Q412
- Table: Key Players: Netherlands Telecoms Sector
- Table: Table: Selected Operators Financial Indicators, 2008-2012
- Royal KPN NV
- 2012 Results
- Table: INSIDE Secure - Key Performance Indicators (US$'000)
- New Focus Area: Embedded Security Solutions
- Strategy Redefined For 2013
- Table: The Netherlands' Population By Age Group, 1990-2020 ('000)
- Table: The Netherlands' Population By Age Group, 1990-2020 (% of total)
Full Table of Contents is available at:
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.