Dutch mobile market revenues drop 3.1%
The Dutch mobile industry generated EUR 1.48 billion in revenue in the second quarter of 2012, showing a decrease of 3.1 percent compared to the same quarter last year and an increase of 2.0 percent compared to the first quarter of 2012. According to Telecompaper’s quarterly mobile market monitor, the main reason for the annual decrease in revenue continues to be the drop in voice revenue, mainly due to regulatory effects. Seasonally the second quarter is stronger than the first quarter, but this year growth was almost half last year’s rate, with revenues up only EUR 29 million. Non-voice services, consisting of data and SMS, now contribute 40 percent of total mobile service revenue, but these are not growing fast enough to offset fully the erosion in voice revenues.
Leading market research firm Telecompaper has updated its five-year outlook for the Dutch mobile industry. Based on the recent quarterly results and current market conditions, we expect the Dutch market to show a decline of around 3-4 percent to EUR 5.8-5.9 billion in service revenue over the full year 2012. For the forecast period 2011-2016, the Dutch market is expected to show a CAGR of 0.1 percent, which means service revenue will be little changed compared to 2011 at around EUR 6.1 billion in 2016. Regulation and the weak economic climate are expected to continue to have an effect on operators’ revenues. “Besides regulation, the shift to data-centric customer behavior will force operators to make further adjustments in their tariff pricing in order to counteract the continuous drop in voice revenues,” said Alejandra van de Roer, Telecompaper senior research analyst and author of Telecompaper’s quarterly mobile market monitor for The Netherlands.
KPN showed the biggest annual decline (-5%) in total service revenues in the second quarter, while T-Mobile and Vodafone showed relatively smaller drops and as such increased their market shares. KPN saw its market share decrease by 1.0 percent annually, while T-Mobile increased by 0.6 percent and Vodafone added 0.4 percent.
In terms of mobile SIMs (including MVNOs), the Dutch market saw an increase of 1.5 percent annually to 20.9 million at the end of June 2012. As a consequence mobile market penetration increased from 123.6 percent in Q2 2011 to 125.0 percent in Q2 2012. KPN’s market leader position eroded slightly to below 47 percent of all subscribers, while Vodafone saw its market share increase to almost 29 percent. T-Mobile declined slightly to around 24 percent.
More at The Dutch Daily News