Less regulation in the market for fixed telephony

The Netherlands Authority for Consumers and Markets (ACM) will cease to carry out part of its regulatory activities with regard to fixed telephony. The reason behind this decision is that none of the market participants have a strong position any more, which was revealed by an ACM analysis. More and more consumers use new, digital-telephony services. However, Dutch telecom company KPN  will continue to be regulated on just the small-business market, where 2 to 12 voice services can be processed simultaneously. In that market, KPN will need to meet fewer requirements than before.

Thanks to competition, the various markets for fixed telephony are evolving very well. At this point, consumers mostly take out digital-telephony services, which are mostly sold in plans combined with broadband access and television services. By now, almost 85% of all consumer connections are digital. We expect the share of classic connections to be less than 5 percent by the end of 2019.

More and more digital services

Classic services such as ISDN2 and ISDN30 are increasingly making way for digital services such as voice-over-broadband and hosted voice. In the large-business market, where more than 12 voice services can be processed simultaneously, KPN’s competitors have been able to improve their competitive positions. That is why ACM has established that it is no longer necessary to impose requirements on KPN in the large-business market. In the small-business market however, KPN’s market share is high, which means regulation is still necessary.

Market participants have the opportunity to comment

ACM has laid down its analysis in a draft decision on which market participants have the opportunity to comment. Once these comments have been processed, ACM will submit the draft decision to the European Commission, after which ACM will take a final decision.