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Press Release

Dutch fixed telephony revenues drop below EUR 300 million in Q1 2016

Houten, The Netherlands, 14 June 2016 - The Dutch fixed telephony revenues* decreased below EUR 300 million during the first quarter of 2016, according to Telecompaper's latest Dutch Fixed Telephony Market report. During the quarter fixed telephony revenues decreased by 4.6 percent to end March with EUR 287 million. The continued decrease in revenues is due to lower usage and lower prices and is ongoing since 2013.

The number of fixed telephony connections decreased by 4,000 during the quarter, to end it with almost 6.3 million. The 0.6 percent growth in digital lines was not enough to off-set a five percent decrease in PSTN/ISDN lines. Digital telephone lines in the Netherlands reached 5.56 million on 31 March 2016, driven by 4.9 percent sequential growth in VoIP users on fibre networks. At the same time, DSL and cable VoIP were stable during the quarter at almost 2.1 million lines and 2.7 million lines respectively. Fibre VoIP grew to around 830,000 customers on 31 March 2016.

“A similar pattern is expected for the coming years, with a slight decrease in connections, as VoIP growth via DSL and fibre broadband is not expected to completely compensate for the decrease in traditional telephony and the slow decline in cable phone lines,” said Kamiel Albrecht, Telecompaper analyst and author of the report. “As KPN’s price level for DSL/fibre VoIP is effectively zero compared to EUR 12-21 per month for traditional telephony, the revenues from fixed telephony will continue to decline.”

Telecompaper expects these trends to continue in the coming years and forecasts a compound annual growth rate of -0.1 percent in connections and -2.6 percent in revenues over the period 2016-2020.

Notes to editors

*The retail revenues include access and usage revenues from PSTN/ISDN/CPS/WLR services as well as VoIP services via cable, DSL and FTTH networks. It excludes revenues from unmanaged VoIP services like Skype, as well as installation fees and equipment sales.

Due to continuous improvement in our calculations, the numbers in this press release cannot be directly compared with numbers from earlier press releases sent out by Telecompaper on previous studies of the Dutch fixed telephony market.

Telecompaper’s ‘Dutch Fixed Telephony 2016 Q1’ report provides detailed figures for Q1 2016 and five-year forecasts for subscriptions, revenues, and provider and technology market shares. Price for 10 users is EUR 795.00. Single-user price for the report is EUR 495.00.

Telecompaper

Telecompaper is a respected, independent market researcher and news agency focusing on the national and international Technology, Media and Telecom (TMT) sector. Telecompaper provides its customers with information, insight, analysis and news. National and international businesses, organizations and government bodies use our information to make decisions across all organizational levels and to help develop their policies. For more information, please visit our website at:www.telecompaper.com.

Contact

Kamiel Albrecht
Research Analyst
Phone:00316349661
Email: kamiel@telecompaper.com



Categories: Fixed
Countries: Netherlands



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