The Netherlands’ two biggest broadband providers had a rough finish to 2020, with both Ziggo and KPN losing customers in Q4, research by Telecompaper shows. While the new coronavirus lockdown from mid-December may have dampened market growth, number three T-Mobile showed no signs of a slowdown and continued to outperform.
Ziggo lost broadband customers for a second consecutive quarter, shedding nearly 8,000 subscribers in Q4. The market leader blamed the drop on tough market competition and said it was hoping new Wi-Fi products would help improve customer satisfaction. Over the full year 2020, Ziggo added just 1,400 broadband customers for a total of 3.36 million.
Number-two KPN did little better, with a loss of 5,000 broadband customers in Q4. Despite an accelerating roll-out of its FTTH network, KPN has been losing residential broadband subscribers for two years due to its decision to phase out its second brands. Over the full year, KPN’s broadband base fell by 22,000 to 3.14 million, as the addition of 34,000 business subscribers was offset by the loss of 56,000 consumers.
Together, Ziggo and KPN account for over 80 percent of the broadband market. Dutch consumers appear to be ready for a change though, as T-Mobile’s growth continued at a strong pace in Q4. T-Mobile added 21,000 broadband subscribers in Q4, out of a total 63,000 net additions in the full year 2020. Its base grew by over 10 percent in 2020 to 668,000.
"The increased reliance on broadband during the coronavirus crisis may be prompting some consumers to reconsider their long-time ISPs," said Kamiel Albrecht, Telecompaper’s senior research analyst for the Dutch fixed market. "T-Mobile appears to be the main beneficiary, helped by its attractive bundled offers with unlimited mobile data and expanding FTTH footprint. We expect its growth to continue at a high level in 2021."
The Dutch broadband market is highly saturated, with one of the highest household penetrations in the world, at over 96 percent. KPN and Ziggo have relied in recent years on bundling fixed and mobile services with discounts and extra services to win over new customers. The latest figures suggest this growth strategy may be approaching its peak. KPN reached over 50 percent of broadband subscribers on FMC contracts at year-end, and Ziggo grew to over 43 percent in 2020.
For a complete overview of the Dutch broadband market, see Telecompaper’s Dutch Broadband Operators quarterly report. The Q4 2020 edition will be published later this month, including details on revenues, subscribers, market trends and a 5-year forecast. For more information, please contact research@telecompaper.com.
