Fibre networks help grow Dutch fixed telephony lines in Q3

News Broadband Netherlands 27 NOV 2014
Fibre networks help grow Dutch fixed telephony lines in Q3
The Dutch fixed telephony market showed a small increase of 0.1 percent in connections in the third quarter to end September of this year with 6.213 million lines. After three quarters of decline, the market returned to growth, thanks to more fibre and DSL customers taking fixed lines, according to Telecompaper’s quarterly report about the Dutch fixed telephony market. Consumer VoIP connections increased 0.8 percent to 5.22 million, offsetting the 5.0 percent drop in PSTN/ISDN lines and 1.5 percent decrease in WLR connections. The retail revenues for the consumer fixed telephony market amounted to EUR 323 million in the third quarter, down almost 1 percent compared with the second quarter.

The expansion of fibre networks in the country is helping grow the number of VoIP connections, as consumers increasingly have a fixed line included with their broadband subscription. VoIP connections over fibre networks increased 3.5 percent on a quarterly basis, and DSL VoIP subscriptions also increased 0.5 percent in the quarter. Cable networks, which are still the most common way to subscribe to a fixed line, saw little change in their telephony customer base during the quarter.

Dutch fixed telephony market shares per technologyThe cable operators are maintaining their market share, but they may be approaching a saturation point in terms of how many more fixed lines they can sell, according to Telecompaper. At the same time, the decision UPC and Ziggo to stop offering free on-net calls earlier this year shows the operators are more focused on growing revenues than the number of connections. Despite the small increase in the fixed market in the third quarter, Telecompaper still expects the total number of fixed lines to fall this year, by 0.6 percent. For the five-year period 2014-2018, the researcher expects a CAGR of -0.7 percent, as growth in VoIP lines will not be enough to outpace the decrease in PSTN/ISDN and WLR users.

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