Dutch broadband market reaches 7.5 mln connections, EUR 2 bln revenues in 2018

News Broadband Netherlands 10 APR 2019
Dutch broadband market reaches 7.5 mln connections, EUR 2 bln revenues in 2018
The Dutch market for fixed broadband internet advanced by 1.1 percent last year to 7.5 million connections, according to Telecompaper’s latest study of the broadband market. In particular, Ziggo (+51,000) and T-Mobile Netherlands (+50,000) recorded strong growth in the number of connections, offsetting declines at Tele2 Netherlands (-21,000) and KPN (-15,000). As a result of the rise in the number of broadband lines and of price increases at all providers, broadband revenue climbed 4.9 percent to EUR 2.02 billion.

For the fourth quarter, the broadband market grew by 0.3 percent in volume, including fibre and cable broadband. That growth was enough to compensate for the decrease in DSL. Cable remains the most widely used technology for broadband, with 3.47 million connections at 31 December 2018, 1.5 percent more than at the end of 2017. Fibre lifted 6.9 percent to 1.23 million broadband connections in the same period. DSL fell 1.6 percent, for a total of slightly under 2.8 million connections.

Ziggo remains market leader, KPN falls

Ziggo was still the market leader with a market share of 43.9 percent, following growth in 2018 of 1.6 percent to 3,292 million connections. KPN (including subsidiary brands Telfort and XS4ALL) followed with 40.4 percent. After a decrease of 0.5 percent in volume, the operator ended up at 3,028 million connections last year.

Aside from Ziggo and KPN, the Dutch fixed broadband market also has a number of smaller players, such as Tele2 NL and T-Mobile NL. These two companies merged on 1 January after the European Commission gave its green light. of the two, Tele2 NL is the largest party on the broadband market with a 3.7 percent share, 0.4 percentage points less than in Q4 2017. T-Mobile NL meanwhile advanced in 2018 -by 0.6 percentage points- to 3 2 percent. Together, the two providers have less than 7 percent of the broadband market, far behind Ziggo and KPN.

Broadband revenue rises 4.9% to EUR 2.02 billion

Revenue from broadband connections rose 4.9 percent in 2018 to EUR 2.02 billion. The increase comes from a combination of growth in the number of broadband connections and price increases that KPN (plus its brands Telfort and XS4ALL) and Ziggo have implemented.

For 2019-2023, Telecompaper expects an average annual growth of 0.9 percent in the number of broadband connections and an average annual revenue growth of 0.9 percent. This would bring the broadband market in 2023 to around 7.84 million connections, generating more than EUR 2.1 billion in revenue.

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