More and more homes in the Netherlands are connected to a fiber optic network for internet, television and telephony. But there are regional price differences for fiber optic subscriptions. What you pay for your subscription depends on the fiber optic cable that is installed to your home.
If the fiber optic cable to your home has been installed by, for example, Open Dutch Fiber (ODF) or DELTA Fiber, then you already have an internet subscription for 35 euros per month, calculates Marit Veldkamp of the comparison site internetten.nl. But if you have a fiber optic cable from KPN, for example, you will spend at least 42 euros per month.
That leads to strange situations. In Amsterdam, for example, ODF installs fiber optic in one neighborhood and KPN in the neighborhood next door. It can therefore happen that fiber optic customers in one district pay less for their subscription than in another district.
According to KPN, the installation costs are one of the reasons why the rates on its network are slightly higher. “Where other fiber optic parties limit themselves to areas that can be quickly installed, KPN is replacing its network throughout the Netherlands,” a spokesperson for the telecom company tells NU.nl. “This enables other fiber optic parties to make attractive offers, especially in urban areas.”
Fiber optic networks can be installed cheaper and faster in urban areas than in villages or rural areas, confirms fiber optic expert Rudolf van der Berg of consultancy firm Stratix. In rural areas, homes are further apart, meaning more digging is required to connect a home.
Regional differences have existed for decades
In addition, local price differences have always existed, says operational director Albert Vergeer of DELTA Fiber. For example, twenty years ago in the Netherlands there was a patchwork of local TV cable networks. Each cable network had its own rates and services.
But the installation costs of the fiber optic network are not the only costs that determine the final price of the subscription. The technology behind the fiber optic network and the fiber optic service that is provided also influence the price. There are notable differences between the different fiber optic networks.
The fiber optic networks of DELTA Fiber, ODF and various smaller parties have been installed so-called ‘point-to-point’, Van der Berg explains. This means that every house is connected to a network point via its own fiber optic cable and therefore has its own access to the internet. Such a network is more expensive to build, but is more flexible to use.
KPN opts for cheaper fiber optic installation with a competitive advantage
In recent years, KPN has opted for the construction of a so-called PON network. This is a network in which the main cable in the street is split to the homes. This makes a PON network slightly cheaper to install than if its own fiber optic cable is laid to each home.
According to Van der Berg, the construction of the PON network not only provides KPN with cost savings during construction, but also a competitive advantage. “Splitting the fiber optic cable is done by KPN equipment and forces other providers to use KPN equipment.”
Other providers can therefore never offer services over its network without KPN’s intervention, the fiber optic expert continues. “This ultimately makes using KPN’s network more expensive for internet providers.”
“Other internet providers that want to offer services via KPN’s fiber optic network must pay KPN for the use of that KPN equipment,” Van der Berg explains. “KPN also charges for data traffic via the fiber optic cable.” The same internet subscription from Odido, for example, is more expensive on the KPN network than on the fiber optic network of DELTA Fiber or ODF.
“It is true that Odido prices may differ per area,” confirms a spokesperson for the telecom company. “This has to do with the different agreements we have with different network providers.”
In response, KPN spokesperson Hans van Zon says that the telecom company did not opt for a PON network to hinder competition. “PON is the most current fiber optic technology. It is the standard for fiber optic networks that are now being installed worldwide.”
More competition possible on point-to-point networks
According to Van der Berg, with point-to-point networks, internet providers rent the fiber optic cable between your home and the network point. They can connect their own equipment to it and decide for themselves which services they offer. As a result, internet providers can compete better with the network owner via these types of networks than on the KPN network.
The Netherlands Authority for Consumers and Markets does not yet see a problem with the way KPN is installing its fiber optic network, according to an earlier market analysis. According to the regulator, the Netherlands has the luxurious position that in addition to the fiber optic network, it also has a national TV cable network.
In some places, homes are even connected to multiple fiber optic networks. According to the market watchdog, there is enough choice for consumers and the authority does not have to take any measures now.
2023-10-14 13:58:04
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