Recently published research from Business Monitor International, "Netherlands Telecommunications Report Q1 2014", is now available at Fast Market Research

Boston, MA -- (ReleaseWire) -- 02/07/2014 --Despite the lack of growth opportunities in terms of subscriptions, the Netherlands remains a dynamic market with extensive roll-out and uptake of wireless data services. In the wireline segment, the popularity of bundled services in the Netherlands has mitigated the decline in fixed-line subscriptions through fixed-to-mobile substitution. Furthermore, the Netherlands broadband market is one of the most developed in Western Europe in terms of advanced infrastructure deployment and high penetration of wireline and wireless broadband services.

Key Data:

- KPN has signed an agreement with the Dutch tax authorities in relation to the size of a tax book loss that is likely to be recognised upon completion of the sale of E-Plus to Telefónica Deutschland. The book loss reaches nearly EUR3.7bn (US$4.9bn) and will affect KPN's taxable income in the Netherlands in the coming years, starting from 2014. The agreement has been marked as another significant step for KPN and the latest technologies in the Netherlands, according to KPN CEO Eelco Blok.
- KPN has reported a fall in net profit from continuing operations by 56% in Q313 as it recorded a noncash write down ahead of the sale of its E-Plus subsidiary in Germany. Net profit was at EUR87mn (US $120.0mn) due to lower operating profits because of higher smartphone subsidies were slightly offset by lower financing costs. However, the group's profits along with the E-Plus write down for Q313 came in at a loss of EUR241mn (US$332.2mn), compared to a profit of EUR267mn (US$367.9mn) 12 months ago.

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Key Trends And Developments

Dutch operator Nouvité, in collaboration with Japanese telecoms equipment vendor NEC, will set up a network of sustainable data centres in the Netherlands. According to the deal, the operator will establish its first data centre at Alticom's Gerbrandy tower in IJsselstein. The data centre will be built using equipment from NEC and applications from VMware, Veaam and Microsoft.

T-Mobile Netherlands is to sell its fixed broadband and telephony business to the CDS Group for an undisclosed sum. Although T-Mobile says the sale is in line with its strategy of concentrating on higher value opportunities in mobile broadband, BMI believes the move reflects the highly mature and competitive nature of the Dutch fixed broadband market where T-Mobile's ageing copper network struggled to match the quality of its rivals' fibre and DOCSIS 3.0 cable offerings. Meanwhile, the assets being sold will still be useful to CDS' CanalDigitaal triple-play business.

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