The ACM will be monitoring KPN and Glaspoort’s network access commitments, which may have helped save VodafoneZiggo from new regulation
Competition removes the need for regulation: In July 2023, after a lengthy investigation, the Authority for Consumers and Markets (ACM) issued its draft decision that no additional measures are needed to promote competition in the high-speed broadband market in the Netherlands. According to the regulator’s latest ‘Telecom Monitor’, fibre coverage is growing rapidly and now reaches over 6.1m households. Progress is being driven by the investments of established operators and newer independent challengers, which means no dominant player exists in any of the five regional markets the ACM has identified. As a result, Dutch consumers and businesses are able to choose between an increasing number of providers – and enjoy reasonable prices. Rollouts are expected to continue over the next three years with close to 100% coverage expected.
KPN and Glaspoort are subject to binding wholesale commitments: Specifically, the regulator calls out the ability of operators to access the networks of KPN and Glaspoort (a joint venture between KPN and pension fund APG) as being key to its analysis and subsequent determination. In March 2022, the two firms proposed improved access conditions and lower wholesale prices through to 2030 after the ACM identified a risk that the prevailing access charges and conditions could make it more difficult for other operators to compete, both in the short and the long term. In August of that year, the regulator declared the commitments binding, stating it would observe compliance. With users able to access high-speed broadband services from at least two different fibre networks and often via cable, the ACM therefore considers there is sufficient competition in the market and that wholesale access regulation is not necessary. The ACM’s decision on the basis of current market conditions means that the nature of its oversight changes; however, it will be monitoring closely both the market and consumer choice, as well as the prospect of consolidation that could alter the competitive landscape.
VodafoneZiggo outside the ACM’s crosshairs: As part of its review, the ACM considered whether regulatory measures are needed to stimulate competition in areas where high-speed broadband services are available solely via cable infrastructure. For some time, it had appeared that VodafoneZiggo would be subject to access obligations, with the regulator outlining in 2018 that VodafoneZiggo and KPN held a position of joint dominance. However, in March 2020, the operators were able to successfully appeal this finding in court. Ongoing fibre deployments and the voluntary commitments of KPN and Glaspoort may have ultimately helped dissuade the ACM from requiring VodafoneZiggo to open up its network on a wholesale basis. Relatedly, the ACM has ruled against YouCa, which was seeking to access VodafoneZiggo’s network in the city of Amsterdam. Due to technical infeasibility and plans of multiple operators to roll out fibre, the regulator does not consider that mandated wholesale access is needed.
