Information Technology in the Netherlands
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Telecommunication Infrastructure |
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The Dutch wireline
market was completely liberalized in 1997 which was ahead of the EU mandated
January 1, 1998 deadline. The act provided interconnect access to KPN’s lines
and MCI WorldCom was one of the first competitors who began offering
services. The act also created the OPTA, which is an independent
administrative body that oversees the opening of the market and is
responsible for insuring a competitive environment. In 1998, a new
Telecommunications Act was introduced that defined the relationships between
incumbents and new carriers. The Dutch Government required all wireline
carriers to offer number portability in 1999 that mandated customers could
keep their phone numbers if they choose to changes carriers.[1] Wireline The leading telecommunications provider, KPN Telecom, is facing heavy demands on its system spurred by 100% a year Internet growth. Certain areas of the country, such as Amsterdam, are growing so fast that KPN is having trouble keeping service up. This is a result of problems they are facing meeting demands for the necessary materials, manpower and equipment for installing new lines and networks. Infrastructure spending is expected to increase to over NLG 3 billion.[2] Wireless The wireless sector is
becoming a competitive market as there are presently five wireless companies
serving the 6.8 million wireless users. While KPN is still the leader in
market share with 52%, they face stiff competition from new companies
entering the mix bidding on spectrum licenses for new 3G next generation
services. The number of wireless users is expected to grow to 8.6 million
users in 2002. [3] Cable Market The Dutch also have very
good cable coverage, as cable is available to approximately 94% of the
population. Although there has not been much activity in using the cable
infrastructure for telephony and Internet access it may provide an excellent
option to improve the telecomm infrastructure. With increased demand on the
wireline system from voice and data application the cable market finds itself
in a very good position although substantial upgrades will be required. [4] Satellite Market KPN dominates another
area, the satellite market, which is used to reach outlying areas and to
facilitate the Netherlands as a heavy trading hub. This gives the ability to
provide broadband access to areas not served by the traditional wireline
infrastructure. Since the Netherlands has heavy rural areas, satellites may
provide a solution that is able to solve the “digital divide.” Internet Usage Internet coverage is
also very high, as there are some 50 national Internet providers and at least
150 more operating on a regional basis. This adds up to 20 Internet hosts per
1000 people in Holland, second only to the United States. This has placed high
demands on the telecomm infrastructure as greater demands, led by data
applications, are exhausting the present system. This will require
substantial investments in new infrastructure equipment to provide greater
capacity. [5] Key
Statistics[6] ·
54.33 main telephone
lines/100 inhabitants. ·
8.431 million main
telephone lines. ·
Network
characteristics: 100 percent automatic, 100 percent digital. ·
International
telephone traffic: 29,300 circuits; minutes per subscriber 182. ·
Network
infrastructure investment 1997: approximately $1.45 billion. ·
Internet Service
Providers (ISPs): 70 (1999) ·
By January 1, 2000,
there were 6.8 million wireless users
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Back to The Information Technology Landscape in Nations page......
Last update:
December 18, 2000