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Regulation of business fiber-optic market is currently not needed

The market for business fiber-optic networks continues to be free. The Netherlands Authority for Consumers and Markets (ACM) does not impose any requirements or conditions on owners of fiber-optic networks in order to force them to grant other companies access to their networks. At the moment, the market for access to business fiber-optic networks does not need to be regulated, because sufficient competition already exists in that market. ACM has come to this conclusion in its final market analysis decision.

Fiber-optic market continues to grow

The number of business fiber-optic connections in the Netherlands is still growing. The Netherlands is a knowledge-driven country, which is why fast data connections over fiber-optic networks are becoming more and more necessary for processing data fast. The total number of connections is expected to rise from 75,000 to almost 90,000 connections by the end of 2018.

ACM can take a step back in this market

Dutch telecom provider KPN is the largest competitor in the business fiber-optic market, but we have not established that it enjoys a strong position. Other businesses are also active on this market and are expanding their fiber-optic networks. In addition, they have been investing in them or they have plans for future investments. As such, we conclude that the market is functioning as well as it should. That is a signal to us, as regulator, that there is no need at the moment to intervene in this market. We will be keeping a close watch on the business fiber-optic market. Yet, if we see a sufficient level of competition in a market, we will be able to take a step back in terms of regulation.

About the market analysis decision

A thorough process preceded this ACM decision. Last summer, ACM consulted the draft decision with market participants. The draft decision was also submitted to the European Commission. In late-July 2016, the Commission approved the decision.