The Dutch fixed-line market contracted by another half a percent in the second quarter to 6.22 million connections. Ziggo narrowed its gap in market share with market leader KPN to just 0.6 percent points, according to the latest Dutch Fixed Telephony Market report from Telecompaper.
The number of digital phone lines was unchanged in Q2 at 5.63 million, with the drop in the market coming entirely from the continued fall in analogue lines. The Dutch fixed market has been contracting since the end of 2015, as the boost from triple-play adoption in the preceding years came to an end.
KPN lead shrinks
KPN remains market leader, but Ziggo is quickly closing the gap. Ziggo added 0.3 percent points in the quarter for a total 40.9 percent of connections at the end of June. KPN lost 0.2 points to reach 41.5 percent. Tele2 is third in the market with a 4.6 percent share, and other operators have together the remaining 13 percent.
Fixed-line revenues fell faster than the number of connections in Q2, down 4 percent to EUR 253 million. Revenues have been falling since 2013 due to lower usage and falling prices. KPN's decision to introduce a new monthly fee for fixed telephony alongside broadband from the start of July should provide a small boost to market revenues in the second half of 2017.
For the full year, Telecompaper expects fixed telephony revenues to fall over 6 percent. In the coming years, the market researcher expects revenues will continue to contract faster than connections, with respective falls of 5.7 percent and 1.4 percent per year in the period 2017-2021.
