Increasing number of bundles and internet telephony in markets for electronic communications

In its Annual Report / Market Monitor 2005, the Committee of OPTA, the Dutch Independent Post and Telecommunications Authority, notes a large increase in consumer sales of bundled communication services. This is enabled by the convergence of previously separated technologies, such as television, telephony or broadband internet access. OPTA also finds an increasing number of people switching to internet or cable telephony. The Dutch broadband penetration remains the highest in the European Union. The number of spam messages send from the Netherlands stabilises at a low level.

Chairman Chris Fonteijn says:‘ We record healthy dynamics at several markets. This is satisfying, as technological innovation and good competition are profitable to consumers to a greater extent. In this respect, I like to pay a big compliment to the telecommunications companies. At the same time, we note that this is also the result of our regulatory approach in the past years’.

Most notably, consumers gain from the increasing competition between infrastructures, especially the fixed telephony and cable networks. The number of households that subscribes to fixed line telephony and broadband internet access from one operator doubled to 20%. Five percent of the households has a ‘triple play’ subscription, for television, broadband internet and telephony.

Meanwhile, many alternatives for fixed network connections become available. Fixed telephony over cable grew strongly to 450.000 subscriptions, while internet telephony (Voice over IP) is available to a broader user group. The number of households without a fixed line subscription is around 14%. Often these consumers only use a mobile subscription. Sales of mobile subscriptions are up to 16 million. The mobile terminating tariffs further decreased with 13%. OPTA decided to continue its regulation along this line.

Fifty seven percent of Dutch households has a broadband internet subscription, a 12 percent increase compared to 2004. This is the highest percentage in the European Union. At the end of 2005, there were 2.5 million xDSL subscriptions and 1.6 million cable subscriptions, for broadband internet access.

Problems with internet safety, for example viruses and spyware, remain a priority for OPTA. The fight against spam is successful, because the number of Dutch spam runs seriously decreased since OPTA obtained the legal power to act against it, in May 2004. Like spam, the fight against illegal dialers that are responsible for unexpected high bills, requires an international approach. In 2005, OPTA started to blacklist (international) numbers related to the dialer problem.

At the free segment of the postal market competition increases, with Selektmail and Sandd as the two main competitors of TPG Post.