Three weeks after UPC launched its mobile internet for businesses product in the Netherlands, the country’s largest cable operator, Ziggo, introduced its own mobile internet services for consumers. The cable operators are fulfilling their promise to launch mobile services in 2011. Market expectations were that they would both select the same mobile operator, as they already partnered in the Ziggo4 venture to acquire a licence for 20 MHz of 2.6 GHz band frequencies during the Dutch auction in June 2010. These frequencies can be used to offer mobile broadband services via the new technology LTE.
While Ziggo and UPC were expected to use one network, UPC has signed a deal to use the Vodafone network, giving it the possibility for international expansion via its UPC Business brand active in nine countries, and Ziggo partnered with Dutch MVNE Aspider using the KPN network. This does not make future integration of services easy, but then they are also not expected to attract a large number of customers for the initial services.
The question remains if the cable operators will really work together to deploy their own mobile network. Since the auction, both Ziggo and UPC have kept quiet about their plans for the joint venture and its licence, despite their respective mobile internet launches. When asked about their possible participation in the bigger mobile auction planned for 2012, where 800 MHz, 900 MHz, 1.8 GHz and 2.1 GHz band frequencies will be offered, both parties declined to comment.
At the same time, rumours about a possible sale of Ziggo or IPO have quieted down. The reports suggested that UPC was the most logical buyer of Ziggo (see our commentary in Dutch 'Ziggo stelt beursgang uit, overname door Liberty Global dichterbij').
The question is whether the choice of different mobile networks by Ziggo and UPC means some kind of impasse in their relationship. It seems more like the calm before the storm, after which the two will unite to create a true competitor for former monopoly KPN, with their own almost nationwide fixed infrastructure plus a licence to deploy their own mobile network. At the moment, Ziggo and UPC are getting mobile services experience from two different networks, which they can then use to make (even) better choices for their definitive mobile plans.
While Ziggo and UPC were expected to use one network, UPC has signed a deal to use the Vodafone network, giving it the possibility for international expansion via its UPC Business brand active in nine countries, and Ziggo partnered with Dutch MVNE Aspider using the KPN network. This does not make future integration of services easy, but then they are also not expected to attract a large number of customers for the initial services.
The question remains if the cable operators will really work together to deploy their own mobile network. Since the auction, both Ziggo and UPC have kept quiet about their plans for the joint venture and its licence, despite their respective mobile internet launches. When asked about their possible participation in the bigger mobile auction planned for 2012, where 800 MHz, 900 MHz, 1.8 GHz and 2.1 GHz band frequencies will be offered, both parties declined to comment.
At the same time, rumours about a possible sale of Ziggo or IPO have quieted down. The reports suggested that UPC was the most logical buyer of Ziggo (see our commentary in Dutch 'Ziggo stelt beursgang uit, overname door Liberty Global dichterbij').
The question is whether the choice of different mobile networks by Ziggo and UPC means some kind of impasse in their relationship. It seems more like the calm before the storm, after which the two will unite to create a true competitor for former monopoly KPN, with their own almost nationwide fixed infrastructure plus a licence to deploy their own mobile network. At the moment, Ziggo and UPC are getting mobile services experience from two different networks, which they can then use to make (even) better choices for their definitive mobile plans.
