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March 19, 2015

Dutch Fixed-Line Base Gets Boost in Q4 Through Triple-Play Marketing


By Joe Rizzo
TMCnet Contributing Writer

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Earlier this week, Telecompaper released it latest report entitled “Dutch Fixed Telephony Market” report. Telecompaper is an independent research and publishing company focused on the telecommunications industry and headquarters in Houten, the Netherlands. Telecompaper provides international customers with research and advisory services, breaking news, digests, expert analyses, company profiles and research reports.


This market report shows that the Dutch fixed telephony market grew by 0.3 percent during the 2014 fourth quarter. Unfortunately, although there was quarter growth, the year-on-year results show that there was a 0.3 percent drop. The growth that was seen was due to a 1.3 percent increase in consumer Voice over IP (VoIP) lines.

According to Kamiel Albrecht, Telecompaper analyst and author of the report “The cable operators have started to lose market share, confirming our analysis that they have reached a saturation point in terms of how many more fixed lines they can sell. The decision by UPC and Ziggo (News - Alert) to stop offering free on-net calls earlier this year shows they are more focused on growing revenues than the number of connections.”

The following chart gives you a look at the Dutch fixed telephony market share broken down by technology.

The growth in VoIP lines can be attributed to a 6.7 percent increase from fiber and a 1.9 percent increase in DSL networks. Overall, these two segments offset the 0.4 percent drop that was seen in cable VoIP lines. KPN’s (News - Alert) triple play market strategy of offering free fixed telephony, combined with Vodafone’s nationwide campaign focusing on its fixed network activities, were the contributing factors to the growth that was seen in the fourth quarter.

On the financial side, the Dutch Fixed Telephony Market report estimated that retail revenues for the consumer fixed telephony market totaled $34.3 million in the fourth quarter of 2014. This represents a drop of about 0.5 percent over the quarter. This led to a year end drop of close to seven percent year-over-year to about $1.38 billion.




Edited by Dominick Sorrentino
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