Boston, MA -- (SBWIRE) -- 08/23/2013 -- 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.

View Full Report Details and Table of Contents

Key Data:

- 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.

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.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Fixed Networks research reports at Fast Market Research

You may also be interested in these related reports:

- United Kingdom Telecommunications Report Q3 2013
- Hong Kong Telecommunications Report Q3 2013
- Colombia Telecommunications Report Q3 2013
- China Telecommunications Report Q3 2013
- Sri Lanka Telecommunications Report Q4 2013
- Bangladesh Telecommunications Report Q3 2013
- Venezuela Telecommunications Report Q3 2013
- United Arab Emirates Telecommunications Report Q3 2013
- South Korea Telecommunications Report Q3 2013
- India Telecommunications Report Q3 2013