Ziggo is approaching market leader KPN in the Dutch fixed telephony market. At the end of March, the companies were separated by just 1 percent point of market. Ziggo's market share increase 0.3 points in Q1 to 40.7 percent, while KPN fell 0.1 percent to 41.7. The two are competing in a steadily shrinking market, which contracted again in Q1, by 0.4 percent to around 6.2 million lines, according to research by Telecompaper. Digital lines increased by 0.1 percent in the period.
The latest edition of the Dutch Fixed Telephony Market report shows that Tele2 is in third place on the fixed telephony market, with a market share of just 4.6 percent. The other providers have together the remaining 13 percent of the 6.24 million lines.
Revenues in the Dutch market fell faster than the number of lines, down 3.4 percent to EUR 263 million in Q1. The drop in revenue started in 2013 and is due to lower usage and prices. This will be compensated somewhat in the second half of 2017 after KPN starts charging again for a fixed line with a broadband connection.
However, Telecompaper forecasts that fixed telephony revenues will still fall over 6 percent in the full year. In the five years to 2021, the market is expected to show a CAGR of -1.1 percent in connections and -5.2 percent in revenue.
