Broadband revenues in the Netherlands grew almost 9 percent in 2020 to over EUR 2.3 billion, according to Telecompaper’s latest Dutch Broadband report. The strong growth was due to both an above-average increase in the number of broadband subscribers and significant price increases at the biggest ISPs. Telecompaper expects there may be less room for price hikes in future as the health crisis impacts the economy.
The number of broadband subscribers in the Netherlands rose 1.6 percent in 2020 to 7.75 million (excluding business connections). The annual growth was higher than in 2019, likely due to more people needing broadband for home working and schooling during the coronavirus pandemic, as well as increased availability of FTTH. At the end of 2020, 96 percent of Dutch households subscribed to broadband, up by 0.7 percent points from a year earlier.
Even more than the increase in subscribers, broadband revenues grew on the back of annual price increases by most of the ISPs. The biggest ISP, cable operator Ziggo with a 43 percent share of subscribers, saw near-zero growth in its customer base in 2020 but still grew revenues 13 percent. Number two KPN showed a net loss in broadband customers in 2020, with its market share dropping by 1 percent point to just under 38 percent. Nevertheless, its annual broadband revenues rose 2.8 percent to almost EUR 1 billion.
"Annual price increases have become a regular occurrence on the Dutch broadband market, as operators face a saturated market and network investment costs to meet the growing demand for bandiwdth," said Kamiel Albrecht, Telecompaper senior analyst for the fixed market and author of the Dutch Broadband report. "After such a big increase in 2020 and the economic recession caused by the health crisis, ISPs may find it difficult to hike prices as much this year and revenue growth will likely slow significantly."
Telecompaper’s report predicts a Compound Annual Growth Rate of 2.7 percent for Dutch broadband revenues in the five years to 2025. The growth is expected to slow from 2022 due to more competition from mobile broadband as a replacement for fixed broadband and possible new access regulation. Both trends are expected to lead to pressure on broadband prices.
A complete view of the Dutch broadband market, including subscriber and revenue figures, market trends and forecasts, is provided in Telecompaper’s Dutch Broadband Operators quarterly report. The Q4 2020 edition is available now for purchase on the Telecompaper website. For a customised analysis or more information, please contact research@telecompaper.com.
