No need for regulation of business fiber-optic market

The Netherlands Authority for Consumers and Markets (ACM) has decided not to regulate the market for access to business fiber-optic networks, because none of the parties have dominant positions. ACM has come to this conclusion in its draft market analysis decision.

Fiber-optic market continues to grow

The number of business fiber-optic connections is still growing. In late-2015, there were 75,000 connections, and this number is expected to rise to almost 90,000 connections by the end of 2018. Not all telecom providers have extensive fiber-optic networks to business parks in the Netherlands. For example, Tele2 and Vodafone have fiber-optic networks to only a limited number of businesses. These providers therefore buy access to other fiber-optic networks such as those of KPN or Eurofiber. In that way, they are still able to offer telecom services to businesses that are not connected to their own networks. According to ACM, the telecom providers are sufficiently able to purchase access to the different networks. As a result thereof, there is no reason to force one or more owners of business fiber-optic networks to grant access to other providers.

“More choice leads to lower prices and improved services”

Henk Don, Member of the Board of ACM, adds: “It is important that businesses have enough choices when buying their telecom services. Such services include high-quality data connections, broadband access, and fixed telephony. Having the ability to choose from multiple providers leads to lower prices and improved services.”

Market participants have the opportunity to respond

Every three years, ACM analyzes the different telecom markets in order to find out whether regulation is necessary for promoting competition. Market participants have the opportunity to respond to the draft decision that ACM published today. ACM will submit the final decision to the European Commission. If the European Commission agrees to the decision, it will subsequently come into force.