Operators are poised to invest in higher speed and capacity networks to maintain their competitive position in the Netherlands, according to a new report from Pyramid Research.
The report, ‘Netherlands: New Mobile Players and Spectrum Auctions Enliven a Mature Market’, anticipates that new players and additional network licensees are expected to stimulate this mature market.
The research firm said with competition set to increase in the mobile sector with two new entrants in the coming year, growth in mobile (4.5% CAGR) is forecast to surpass that of fixed (1.7% CAGR).
Pyramid research analyst at large Jan ten Sythoff said the total market is forecast to grow from $17.57bn in 2011 to $20.59bn in 2016, representing a 3.2% CAGR, 2.3% higher than the regional average.
Netherland’s telecommunications and postal regulator OPTA will be merged with the competition authority as well as the consumer protection agency in order to achieve government cost savings, the report said.
"Radio spectrum in several different bands will be re-auctioned, and 800MHz spectrum will also become available, with some bands likely to be reserved for new entrants," said Sythoff.
"It is less clear if the 2.6GHz licenses acquired by Tele2 and Ziggo4 (UPC/Ziggo) will result in new LTE networks.
"Whether they build and run their own networks or services are provided in a wholesale manner, Pyramid believes it will be challenging for new entrants to gain a foothold in the mobile market."
The report said spectrum auctions offer operators the opportunity to add capacity and speed to their networks.
"The growth in mobile data access, driven by PCs, tablets and smartphones, is an important focus area for mobile operators. High-speed, high-capacity networks provide the best way to retain important market segments," he said.
