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Faster internet connections in Dutch households

Download speeds in Dutch households continue to go up. In late-2015, two in three households had broadband connections with download speeds of at least 30 Mbit per second, while in late-2014, not even half of the households had a connection capable of such speeds. This is one of the findings of the 2015 Telecom Monitor, which the Netherlands Authority for Consumers and Markets (ACM) published today. Henk Don, Member of the Board of ACM, explains: “Over the last three years, telecom operators have made substantial investments in their fixed networks in order to achieve higher download speeds. ACM’s regulation of the copper and fiber-optic networks of Dutch telecom company KPN has had a positive effect on this development.”

4G allows mobile-data consumption to multiply

Mobile-data consumption in 2015 among consumers was twice as high as in 2014, and over three times as high as in 2013. In 2015, mobile-data consumption totaled 112 billion MB. That is more than the consumption in 2013 and 2014 combined (96 billion MB). Mr. Don continues: “Many consumers own smartphones now. 4G enables consumers to use apps that consume a lot of data such as music-streaming or video-streaming apps. In addition, providers offer increasingly larger data plans that allow consumers to use such apps even more.”

All mobile operators now offer nationwide 4G coverage

In 2015, 4G became widely available in the entire country. Since the 4G auction in 2012, the four major operators in the Netherlands (KPN, T-Mobile, Vodafone and Tele2) have invested heavily in the rollout of mobile 4G networks. All mobile operators now offer nationwide 4G coverage in ever larger data plans. The Telecom Monitor also reveals that data traffic over the 3G network is stagnating.

Regulation has a positive effect on the fiber-optic and copper markets

As KPN invests in its fiber-optic networks, other providers also share in the benefits of those investments. They increasingly take advantage of the regulated access to KPN’s fiber-optic network. ACM regulates the tariffs that KPN charges for this access to its network. That way, providers that compete with KPN are also able to offer competitive deals. Mr. Don adds: “Competition in the fiber-optic market benefits consumers: they have more providers to choose from, and providers are stimulated to differentiate themselves on price, quality, and new services.”

Within the new regulatory framework, ACM offers KPN room to make investments in its copper network. Thanks to such investments, higher download speeds of up to 200Mbit/s over the copper network can now be achieved. In 2015, a new type of virtual access was introduced on KPN’s copper network. With it, other providers can offer higher download speeds to their customers. As a result thereof, they are able to compete better with KPN and the cable companies that are already capable of offering such fast download speeds. ACM expects that this new type of access will become more popular among providers in 2016, so that consumers will be able to benefit from the increase in options.

About the Telecom Monitor

Every quarter, ACM publishes the market figures for the telecommunication sector in its Telecom Monitor. Based on data from the most important market participants in the telecom industry, the Telecom Monitor gives an overview of the trends in mobile services, fixed telephony, broadband, television, business network services, and bundles. This time, ACM publishes the figures of the fourth quarter of 2015 together with the annual figures of 2012, 2013, and 2014. This allows us to highlight long-term trends in the telecom sector.

Significant investments in fixed networks

  • In 2012, investments in fixed networks totaled EUR 1.3 billion.
  • In 2013, investments in fixed networks totaled EUR 1.6 billion.
  • In 2014, investments in fixed networks totaled EUR 1.7 billion.
  • In 2015, investments in fixed networks totaled EUR 1.4 billion.

Significant investments in 4G-networks

  • In 2012, investments in 4G networks totaled EUR 528 million.
  • In 2013, investments in 4G networks totaled EUR 2,008 million.
  • In 2014, investments in 4G networks totaled EUR 827 million.
  • In 2015, investments in 4G networks totaled EUR 608 million.

Data consumption explodes

  • In 2013, data consumption over 3G and 4G networks totaled 33.7 billion MB.
  • In 2014, data consumption over 3G and 4G networks totaled 63 billion MB.
  • In 2015, data consumption over 3G networks was 57.5 billion MB, and over 4G networks, it was 54.4 billion MB, which add up to 111.9 billion MB.