Four in five Dutch mobile users have two-year contracts, according to research by Telecompaper. The share of two-year plans has risen to 80 percent from 77 percent over the past five years, while one-year contracts dropped from 19 percent to 16 percent.
Longer contracts are clearly more attractive for service providers, as they ensure a steady stream of income. The two-year plans are often offered at a slightly lower price than one-year or monthly contracts, in order to attract customers.
Some providers offer monthly contracts to differentiate their service with flexibility, as for example KPN and Lebara introduced in October last year. The flexibility has a cost though. KPN charges EUR 1 per month extra for a one-year plan and EUR 2.50 for a monthly plan. Lebara asks EUR 1 more for contracts that can be canceled on a monthly basis.
The share of Dutch customers on a monthly contract has changed little over the years, likely due to the extra costs. Only 4 percent have such a plan, the same as in 2015.
The figures from the Telecompaper Consumer Insights panel also show that many mobile users are no longer in a fixed contract period. This was around 31 percent in the latest survey, up from 25 percent in 2015.
