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The impact of a new entrant on prices

The BIPT sees the mobile market in Belgium developing strongly, with new fourth operator DIGI already triggering a reaction from the incumbents

Belgium is expensive for small mobile data allowances, as well as for the largest plans (200GB+)

On 19 December 2024, the BIPT – Belgium’s communications regulator – published its 2024 international comparative price study comparing residential telecoms pricing in Belgium with France, Germany, Luxembourg and the Netherlands. In the previous (2023) version of its annual study, the BIPT concluded that mobile subscriptions in Belgium were more expensive than in the neighbouring four countries, except for medium-sized data volumes (20-70GB per month). A year later, the regulator has found that Belgium once again proves to be very expensive for smaller mobile data plans (up to 10GB) and is the second most expensive, after Germany, for consumers purchasing a minimum of 200GB. For subscriptions of this type, the cheapest offer in Belgium is €28 (£23) a month higher than in France, which continues to be significantly less expensive than the other countries across all mobile profiles. However, prices have become more competitive for medium to large data needs, with Belgium the cheapest after France in the 20-70GB range.

Some quad-play bundles can cost twice as much in Belgium than in France

For fixed broadband and bundled services, the BIPT concludes (just like last year) that Belgium is generally one of the more expensive countries, with the exception of low usage profiles. For the “heaviest bundles”, which are particularly popular among consumers, Belgium is by far the most expensive. As with mobile, France is comfortably the least expensive country, though the fixed network is one of the best, according to the regulator. When comparing Belgium and France, the biggest difference is seen in 200Mbps+ “4P” bundles (i.e. a quad-play package of TV, mobile, 200Mbps+ broadband and landline services) where consumers in Belgium pay €42 (£35) more a month – twice as much – for the cheapest available offer than those in France. The BIPT also notes that the inclusion of the tariffs of VOO (which was acquired by Orange in 2023) brings down the average price level, which would otherwise be “remarkably expensive”, but adds that it is currently unclear whether Orange will continue to offer the VOO brand.

There is a difference in competitive dynamics between the fixed and mobile markets

As a result of its research, the BIPT considers that the domestic mobile market is developing strongly, while the fixed market lags behind. Mobile prices have remained stable over the past year, while certain operators have cut prices, meaning customers have often received greater value for money. However, in fixed, prices of most broadband and bundled offers have risen without any clear service improvements, including by Orange, which has strengthened its position as market leader. According to the BIPT, the difference in dynamics between the fixed and mobile markets can partly be explained by the fact that consumers are quicker to switch operators in the case of a standalone mobile service than a bundle, while competition in mobile has already been influenced by the announced arrival of a new fourth operator, DIGI. The regulator adds that higher prices does not necessarily translate into better network quality. In France, with its low prices and high quality indicators, there appears to be an inverse relationship, at least with respect to the fixed network.

The arrival of DIGI has already had an effect on the price of mobile services

The latest iteration of the BIPT’s study is based on tariffs as of October 2024 – just before DIGI’s launch on the market. Belgium has traditionally been a three-player mobile market, although the regulator paved the way for the emergence of a new entrant through a reservation of spectrum in the 2022 multi-band auction. Alongside the report, the BIPT has therefore issued a simulation of the impact of DIGI on the international pricing comparison, identifying a notable shift in Belgium’s ranking:

  • In mobile, DIGI creates a considerably more favourable position for Belgium internationally for the lowest data needs (up to 10GB), such that it is no longer the most expensive country, but gets close to the cheapest country, France; and

  • In fixed, DIGI’s tariffs for standalone broadband and “2P” bundle of broadband and mobile services would make Belgium markedly cheaper than any other neighbouring country. The BIPT provides a caveat, however, that DIGI’s fixed offering is currently only available in two locations, Anderlecht and Sint-Jans-Molenbeek.

The BIPT has also outlined the reaction of existing mobile operators to the emergence of DIGI, highlighting that Orange has made adjustments to the price and/or data allowance of some tariffs from its hey! sub-brand, while Proximus has doubled the data volumes for customers of its Mobile Vikings sub-brand. Although there has not yet been any competitive response to DIGI from fixed operators, this may come as the new entrant’s fibre rollout expands. As such, the regulator expects the next iteration of its study in 2025 to look considerably different from the 2024 report.