Netherlands Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• The Dutch telecom industry is among the world's most advanced industries. As in many developed markets, a key focus in recent years has been deploying next-generation networks, be it 5G mobile networks or fiber optic broadband.
• Recently, KKR, a prominent global investment firm, and DTCP, an investment management platform, announced the launch of a strategic agreement between Open Dutch Fiber and T-Mobile Netherlands. Open Dutch Fiber signed a deal with T-Mobile Netherlands to support the rollout. T-Mobile Netherlands, which currently has a mobile base of around 6.8 million customers and a fixed base of 682,000, will be the anchor tenant for the Open Dutch Fiber with a 20-year agreement.
• According to GSMA, mobile calling minutes remained stable at around 10 billion minutes over the fourth quarter of 2023. This has been met with an increase in mobile internet use, with 540 million gigabytes of data used in Q4 2023 alone. These shifts in mobile phone use spurred many consumers to rethink their subscription plans.
• Telecom companies are well-positioned to be the most prominent players in IoT. By leveraging applications, companies can help maximize ROI. Onomondo M2M and IoT SIM cards are available for the Netherlands in all standard form factors, like Mini SIM (FF2), Micro SIM (FF3), Nano SIM (FF4), eSIM (MFF2), and others. Such trends are expected to lead to significant market growth in the future.
• As per market challenges, Deutsche Telekom's supply chains are currently being negatively impacted by several factors, e.g., by a shortage of semiconductor chips, major geopolitical tensions, and the war in Ukraine. There has been a major imbalance between supply and demand in the market for semiconductor chips for a number of quarters now.
• During the post-COVID-19 scenario in the Netherlands, four out of ten employees worked from home. Their connectivity was perceived best when wired, followed by Wi-Fi boosters. This led to major growth in the telecom market.

Netherlands Telecom Market Trends

Voice Services Accounts for Major Share

• VoIP (voice over internet protocols) companies in the Netherlands offer various services, including cloud-based phone systems, SIP trunking, and unified communications solutions. Some of the leading VoIP providers in the Netherlands include Voys, Mtel, VodafoneZiggo, and Odido. These companies offer flexible pricing plans, advanced features (such as call routing, auto-attendants, and call recording), and excellent customer support to help businesses improve their communication and collaboration capabilities.
• As of the first quarter of 2023, Odido accounted for 30-35% of the mobile market in the Netherlands when measured by connections, while KPN occupied between 25 and 30% and VodafoneZiggo between 20 and 25%. Mobile virtual network operators (companies using networks of larger network operators) had a 10 to 15% market share in the same period. Odido's market share was even more significant when measured by total calling minutes at around 45 to 50%.
• Odido (formerly T-Mobile) is ahead in the voice category, followed by the notably strong KPN and Vodafone. VoLTE has been measured for all Dutch operators. All three offer excellent call reliability in urban areas and smaller towns. Even on roads and railways, the call reliability is near 99% or above.
• In the recent drive tests conducted in 19 smaller Dutch towns, all three operators scored on par, achieving a fulfillment ratio of 99%. In this scenario, they all delivered a 100% call success ratio and 100% MultiRAB connectivity, as well as very short call setup times and a high level of speech quality.
• Odido and KPN scored on par in the data drive tests conducted on the 3,000 km of connecting roads in the Netherlands, with Vodafone following at a close distance. The very high success ratios of downloads and uploads, considerable data rates, and even a comparably high share of 5G samples are good prerequisites for using the connectivity features in the future.

OTT Services is Expected to Grow

• The Netherlands has an internet penetration rate of 98.9% as of 2024. According to the recent Dutch Consumer Video Behavior report, Dutch consumers devote around 8% to 9% of their daily video usage to video-on-demand services, accounting for about 25 minutes a day. When it comes to SVOD subscribers, the usage amounts to viewing at least 1.5 hours a day.
• While a 2022 survey found that cost was the most named reason in the Netherlands to cancel a video streaming subscription, the main drivers to pay for a streaming service were the possibility to watch what and when they want and fewer ads, showing the current importance of subscription on-demand platforms.
• Around 18.11 % of all Dutch households subscribe to Netflix, the country's most popular SVOD service. This is especially true of households with children (a quarter of which subscribe to Netflix). A Standard subscription costs around EUR 13.99 (USD 15.23), and a Premium subscription costs around EUR 15.99 (USD 17.41) per month.
• After introducing the new SVOD players Viaplay and HBO Max, the total online usage of these services has continued to rise. According to industry experts, overall, online SVOD services reached 8 million unique users in April 2023 (approximately 7,929,000 people aged 13 and over, which is 52.8%). Although ad-supported and transactional video streaming options are expected to increase in value in the years to come, SVOD will still hold a major dominance.

Netherlands Telecom Industry Overview

• April 2024: Polish IT company Comarch and Dutch telco operator KPN announced that they are extending their partnership with the five-year agreement focused on software-as-a-service (SaaS) and innovation. The expanded cooperation will allow Comarch to help KPN improve internal and external data quality and streamline revenue operations. Comarch’s service will help KPN to reduce the number of complaints from customers, get invoices paid faster, and lower revenue at risk from contested bills and undercharging.
• October 2023: Dutch telco KPN introduced 4 Gbps symmetrical download/upload fiber broadband speeds to its residential customers to claim the highest internet speeds in the Netherlands, citing rising demand. With the introduction of 4 Gbps, KPN offers the fastest internet for the home on any device with the same high internet speed.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support