Houten, The Netherlands, 21 November 2013 - Dutch mobile service revenues fell 6.4 percent annually and declined 1.9 percent quarterly to a total EUR 1.36 billion in the third quarter of 2013. According to independent market researcher Telecompaper's quarterly mobile monitor, the main reason for the market contraction is the continued strong decline in voice revenue, which was not compensated by growth in data services.
Non-voice services, consisting mainly of data and SMS, are estimated at 42.1 percent of total mobile service revenue in the quarter, but these are not growing fast enough to offset fully the erosion in voice revenues. The split between voice and non-voice services is becoming less relevant as well, as operators move towards offering one fixed price for connectivity, rather than charging individually for minutes, SMS and data.
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 6 percent to EUR 5.5 billion in service revenue over the full year 2013. For the period 2013-2017, the Dutch market is expected to show a negative CAGR of 2.5 percent, reaching around EUR 5.1 billion in revenues in 2017.
Our negative outlook is due to the slowdown in data revenue growth, which can no longer compensate fully for the drop in voice revenues. The latter will also be impacted by the recent cuts to termination rates from the start of September 2013. In addition, the slow economic recovery in the Netherlands, continued regulation and a greater impact from OTT and Wi-Fi services are putting pressure on revenues. “Regulation as well as the shift in customer behavior to more data-centric services will force operators to make further changes to their pricing in order to counteract the continuous drop in voice revenues,” said Alejandra van de Roer, Telecompaper senior res>>
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Non-voice services, consisting mainly of data and SMS, are estimated at 42.1 percent of total mobile service revenue in the quarter, but these are not growing fast enough to offset fully the erosion in voice revenues. The split between voice and non-voice services is becoming less relevant as well, as operators move towards offering one fixed price for connectivity, rather than charging individually for minutes, SMS and data.
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 6 percent to EUR 5.5 billion in service revenue over the full year 2013. For the period 2013-2017, the Dutch market is expected to show a negative CAGR of 2.5 percent, reaching around EUR 5.1 billion in revenues in 2017.
Our negative outlook is due to the slowdown in data revenue growth, which can no longer compensate fully for the drop in voice revenues. The latter will also be impacted by the recent cuts to termination rates from the start of September 2013. In addition, the slow economic recovery in the Netherlands, continued regulation and a greater impact from OTT and Wi-Fi services are putting pressure on revenues. “Regulation as well as the shift in customer behavior to more data-centric services will force operators to make further changes to their pricing in order to counteract the continuous drop in voice revenues,” said Alejandra van de Roer, Telecompaper senior res>>
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