Information Technology in the

Netherlands

Liberalization and Deregulation
	About The Netherlands	The Dutch were one of the first countries in Europe to open their markets to competition and continue to take a leading position by encouraging foreign and domestic investments. Royal Dutch PTT was first privatized in 1989. On April 7, 1998 the Telecommunications Act was passed. The telecommunications act regulates rights and obligations in the liberalised telecommunications market. Telecommunications is defined in the act as any transmission, emission or reception of signals in any form, by means of cables, radio waves, optical means or other electromagnetic means. In order to view the Telecommunications Act use the following link to the Ministry of Transportation, Public Works and, Water Management: http://www.minvenw.nl/cend/dvo/home/data/index.html The Dutch government began liberalization movement in November 1995. The Dutch government proposed that an operator other than the PTT be created. KPN was created to compete with PTT. The government is working to promote competition in the $11 billion dollar telecom market but still owns 43% of KPN. KPN has established a global presence through partnerships with such companies as Qwest.[1] Also in 1995, cable operators were permitted to open networks to include telecom services. In addition, mobile service was opened up to competition. The first cable voice services were offered by 1997 and the industry has been growing steadily. High-speed modem services were first offered in early 1998 and the industry is also experiencing steady growth.[2] Digitization in broadcasting has increased capacity and enables space to be used more efficiently and in addition consumers are able to enjoy a broader range of services.[3] As a result of liberalization an independent national regulator has been created. Licenses have been awarded to such national network companies as Enertel and Telfort. There have been around 1200 regional licenses granted to regional carriers to offer competitive services. Steady consolidation has started to occur with the many diverse regional carriers. The major player in consolidation is UPC.[4]
	Telecommunication Infrastructure
	Liberalization and Deregulation
	Internet Diffusion
	Electronic Commerce
	Hardware manufacturing
	Software development
	Who Uses IT
	IT Geographics
	IT Financing
	IT Labor Market
	Government Policies
	Legal Environment
	Transborder Data Flows
	Analysis: IT strengths and weaknesses
	Analysis :Impacts on the Business
	Sources and Links
	About the authors

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The MOGIT site	TheKogod School of Business	AmericanUniversity

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Last update: December 18, 2000

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[1] US Department of State FY2001 Country Commercial Guide

[2] http://www.inside-cable.co.uk/c_neth.htm

[3] The Dutch digital delta

[4] http://www.inside-cable.co.uk/c_neth.htm