Mobile market continues to shrink in second quarter of 2018

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The Dutch mobile market contracted significantly last quarter. In the second quarter of 2018, the market generated a turnover of 938 million euro, 8.2 percent less than in the same period a year earlier. This is comparable to the first quarter on an annual basis.

Telecompaper reports this in its quarterly report on the mobile market. According to experts, the contraction of the market is due to the influence of regulations, increased price pressure and strong competition. Two companies saw their market share grow: Tele2 and KPN and Vodafone experienced the largest contraction.

Biggest blows

Of the four operators with their own network, Tele2 saw the only growth in quarterly turnover (+13.8 percent). The company remains the smallest, but now has a market share of 6.7 percent. In addition, KPN’s share shrank the least (-5.8 percent) and now has a market share of 41.7 percent. T-Mobile saw a slightly higher decline in turnover (-7.2 percent) and still has a share of 22.8 percent. Vodafone, which combines its mobile sales with Ziggo, had to cope with a contraction of 15.9 percent and still has a market share of 28.8 percent.

According to the providers, the contraction of the mobile market is mainly due to issues such as new and increased regulation. There is also price pressure and fierce competition. For example, Vodafone calculated that new regulation had an impact of €17 million, which came from a combination of lower call handling revenues and lower roaming revenues.

Permanent shrinkage

The market is expected to continue to shrink. This year, the total contraction according to solar forecasts will be four percent, bringing the total market down to 3.9 billion euros in 2018. In addition, a contraction of 1.8% to EUR 3.7 billion is expected for the year as a whole.

According to analysts, this is due to the fact that competition and price pressure persist. The growth in turnover from data and other additional services would not be enough to compensate for this.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.