Delta looks for growth with expansion outside Zeeland

Wednesday 7 March 2018 | 12:32 CET | Market Commentary
Dutch cable operator Delta, based in the province of Zeeland, has started to offer triple-play services outside its footprint, by participating in a demand aggregation campaign by rural fibre operator Glasvezel buitenaf. The campaign is in two municipalities in the Dutch province Brabant, and Delta plans to participate in several more Glasvezel buitenaf campaigns. If the initial campaigns go well, Delta plans to expand to more areas. Glasvezel buitenaf is a subsidiary of fibre network operator CIF that was acquired by Delta’s parent EQT at the end of 2017.

By expanding outside Zeeland, Delta opens a new opportunity for growth, beyond the limited market of 192,000 households/businesses connected to its HFC network. During the past years, Delta has lost television subscribers, the same as other cable operators, while its broadband customer base is little changed at around 100,000 customers, and the company counts around 55,000 fixed telephony customers, according to Telecompaper quarterly reports on those markets.

Since EQT acquired Delta in the beginning of 2017, the company has announced that it will shut down its analogue TV service in 2018, start to upgrade its network to offer broadband speeds up to 1 Gbps, and launch a new IPTV service. Now a footprint extension enters the mix.

With the move, Delta follows its sister company Caiw, which is already active on all the fibre networks operated by CIF and Glasvezel buitenaf projects. These provide coverage of around 350,000 households. For Caiw, participating in the Glasvezel buitenaf projects,has led to more TV subscribers during the past year, reversing the downward trend of previous years.

EQT seems to choose a two-track strategy, with Delta and Caiw operating side by side. It is not yet clear if a choice will be made for one brand or if EQT will differentiate on price and products at the two brands. Delta is also an energy services provider and is able to offer those services outside Zeeland, so when VodafoneZiggo’s network is opened to third parties, as proposed by Dutch regulator ACM, Delta could take its triple-play offer nationwide.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment