Dutch Authorities Step Back from Cable Intervention

THE HAGUE: Dutch cable providers UPC and Ziggo will not have to open up their networks to rival platforms, the Commission of the Dutch Independent Post and Telecommunications Authority (OPTA) has said, thanks to the rapid pace of digitization in the market.

"The consumer markets for fixed telephony, Internet access and television are developing favorably," OPTA says. "The penetration of broadband Internet access has increased further. As a result, the Netherlands is retaining its position amongst the world’s leading countries in this regard. The range of services on offer has also developed further. This is visible in the strong growth in the bundling of telephony, Internet access and television and in the further digitization of services such as interactive television, HD television and telephone calls using a digital connection (VOIP). As a result of the sustained digitization and convergence of networks, the barriers to entry by competitors are being lowered and players are developing new services.

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The decision backtracks on a previous measure, announced at the beginning of 2009, to open up the networks of UPC and Ziggo until at least 2012. "It appears from OPTA’s new analysis that in recent years the television market has become more competitive sooner than was expected as a result of digitization," the regulator said. Almost 70 percent of Dutch homes have digital TV, OPTA says. Furthermore, upstart platforms can access the network of dominant telco KPN.

Cable Europe issued a statement welcoming the measure. Spokesman Gregg Svingen said, “OPTA made a decision today which reflects market realities…. This is part of an encouraging trend as the European Commission has recently expressed concerns regarding Belgian regulators attempts to impose rules on an evolving TV market.”

This week, the European Commission expressed concerns about proposed new legislation in Belgium that would require cable operators Telenet, Brutélé, Numéricable, Tecteo and AIESH to give competitors access to their digital TV platforms, resell their analogue TV services and resell their broadband offerings. The move is intended to open up the Belgian market to IPTV and satellite operators, given cable’s dominance—80 percent of homes receive TV signals through cable platforms.