ACM sees sufficient competition in the Dutch telecom market, but keeps a close watch

At the moment, there is sufficient competition in the Dutch telecom market. This has been one of the conclusions of the definitive market analysis decision of the Netherlands Authority for Consumers and Markets (ACM). At the same time, ACM continues to be vigilant, and will analyze the competitive landscape in the telecom sector each year in order to ensure that providers continue to offer products and services at the best price-quality ratio. Following a market assessment, ACM has found that some consumers are able to take more advantage of the opportunities that the market offers them.

ACM sees that there is currently sufficient competition in the telecom market, and thus reaffirms its previous position that further regulation of the market is not necessary right now. However, ACM did decide to take a closer look at the competitive landscape in the market each year in order to make sure that the market continues to work for consumers, also in the future. For example, ACM will assess whether Dutch telecom providers KPN and Glaspoort comply with the commitment decision in which they open up their fiber-optic networks to other providers of telecom services. In addition, ACM will check whether, over the next few years, the announced roll-out of fiber-optic networks is actually realized by various market participants. In addition, ACM remains alert to acquisitions in the telecom sector, as those can also lead to a deterioration of the competitive landscape.

Manon Leijten, Member of the Board of ACM, explains: “ACM continues to assess whether there is sufficient competition in the market, since this is not a given. Price is very important to consumers. At this point, we see a wide selection and we see providers that are prepared to offer new customers hefty discounts. For consumers, it means that it pays off to see whether their current plans still offer the best prices and speeds.”

A previous study revealed that, with regard to broadband access, consumers are prepared to switch providers if they are able to save 18 euros per month. ACM data has shown that savings in the first year with discounts can be over 20 euros per month. In addition, consumers can also realize savings in later years.

Check the prices and speeds of your plans

As a rule of thumb, the higher the speed is, the higher the price is. A study into the availability and affordability of broadband and telephony revealed that a large group of consumers (46 percent) does not exactly know what their purchased download speed is, and one in three (37 percent) finds it difficult to estimate what download speed they need. According to ACM, those who do not wish to switch but still wish to save costs are best advised to look each year at their purchased speed and to see whether they need that speed, for example by using a download-speed recommendation tool, which is something many providers offer. Furthermore, consumers may consider downgrading or removing certain elements of their current plans in order to reduce costs. It can also pay off to compare providers or to call your current provider and ask them whether they have a better deal.

Varied selection with fiber-optic roll-out

Thanks to the rapid roll-out of fiber-optic networks, consumers and businesses in more and more places are able to choose between multiple providers of high-speed internet at competitive prices. This has been made possible because fiber-optic networks are open to different providers of telecom services. In many cases, high-speed internet over cable networks is also an option. The roll-out of fiber optic is not expected to slow down anytime soon, and these networks are expected to remain open to providers without fiber-optic networks of their own. The market analysis decision reveals that ACM expects that practically all consumers and businesses will have a fiber-optic connection within the next two years.