According to the Authority for Consumers and Markets (ACM), Dutch households will collectively save hundreds of millions of euros on their internet subscription. This is because the fiber optic suppliers KPN and Glaspoort (a joint venture between KPN and pension provider APG) will lower their purchasing rates for providers.
ACM expects that this will increase competition. This would result in annual savings for internet users of up to 200 million euros in four years.
A so-called draft decision has been published today. This will be submitted to market parties for consultation in the coming six weeks. If nothing changes, the new agreements will apply for eight years.
The proposal from the fiber optic owners follows years of discussion about the rates. KPN not only sells fiber optic subscriptions to consumers, but also ‘rents’ its network to other providers, so that they can offer their own subscriptions. For years there has been haggling about the purchasing costs they incur for this.
The providers Tweak, T-Mobile and Freedom Internet are very critical of what is now ahead. They argue that even with the price reduction, the purchasing rates are too high. It is unclear whether consumers will benefit from the changes, they warn.
Suggest lower rates
At the beginning of this month, KPN made a proposal for lower tariffs, just as the ACM was about to publish a report in which it would prepare for market regulation. This would restrict KPN’s freedom of movement.
The regulator now states that KPN’s plan will lead to “more competition on price and speed, making it more attractive for households to opt for faster internet”. In recent days, the NOS spoke with parties in the sector. They say that KPN’s move means that there will be less competition on price and speed.
“On April 1, ACM said that it will in fact stand behind its back in the coming years,” says an insider in the telecom industry who wishes to remain anonymous because of the sensitivity of this file. “The message from the ACM was that this is one of the best things for consumers since the introduction of the iPhone.”
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