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Belgian telcos turn to convergent services as market regulation and saturation temper growth prospects

Strategic Highlights
Published: 2018-08-22

As per InfoCom’s quarterly consumer and business monitoring, Belgium had more than 4m and roughly 12m fixed broadband and mobile subscriptions, respectively. For this period, fixed broadband sustained its growth trajectory, while mobile subscriptions contracted by 13% YoY as attributed to the high prepaid churn. The ongoing SIM card registration alongside prepaid to postpaid migration still served as the main culprits for the said development. Despite this, some mobile operators managed to slightly improve the development of their mobile subscriber bases as partly linked to the promotion of convergent offers highlighting mobile services. In particular, Proximus offered up to 40% discount per month to its new customers of multiple play offers (i.e. Tuttimus, Minimus, and Familus) for a minimum contract of four months. An average of 25% discount is likewise offered to its new business subscribers of Bizz tariffs (e.g. Bizz All-in, Bizz office) for the same length of contract. As per InfoCom’s monitoring, Proximus managed to minimise the losses in its residential mobile subscriptions, while it registered around 4% YoY growth in its business mobile subscriptions during the period.

This was also the same case for the fixed broadband segment wherein the growth was mainly attributed to the increasing popularity of convergent offers. In particular, Orange Belgium claimed to have launched the country’s first multiple play offer which feature up to unlimited calls, SMS, and data volume under the “Love Unlimited” offer. This offer is also bundled with up to 100 Mbps cable broadband connection. InfoCom noted that the operator more than doubled its convergent user base (+111% YoY), resulting in significant growth in residential and business fixed broadband subscriptions (+84% YoY and 74% YoY growths, respectively).

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Published: 2018-08-22





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