Netherland - cable access regime

Dutch regulator forces cable TV to allow resellers

Dutch cable television operators will be forced to allow rivals to resell TV subscriptions under a draft decision by telecoms regulator OPTA published on Tuesday.

OPTA at the same time plans to free the former telecoms monopoly KPN from some restrictions in the consumer market for telephony, saying competition was sufficient.

KPN has long complained that it has to allow alternative providers on its network while cable television companies such as Ziggo and Liberty Global's UPC, whose networks can also carry voice and data, were under no such obligation.

OPTA now plans to force cable companies to offer a wholesale deal to competitors who want to sell analogue cable TV to their customers, for instance bundled with broadband Internet access. Rivals will have to secure their own broadcast rights, however.

The regulator said satellite TV and KPN's digital TV offers "do not put sufficient pressure on cable tariffs and have not led to more choice in the cable bouquet".

Private equity-owned Ziggo, the biggest Dutch cable operator, said it could only comment on the proposal once OPTA publishes further details.

OPTA said it expected competition around bundles combining different services such as television, telephony and broadband Internet to heat up as the networks of telecoms and cable TV companies can essentially offer the same services.

"To avoid that just two dominant access networks remain that consumers can chose from, KPN or a cable network, competition from alternative providers is necessary," OPTA said.

"OPTA will stimulate investment of third parties by allowing access to the networks of KPN and cable companies."

The regulator will remove restrictions on KPN in the consumer market for telephony such as minimum and maximum tarriffs.

The telecoms group welcomed the move, saying it would have flexibility to target different consumer segments and compete with cable operators on a regional basis.

"In the corporate market, KPN will have increased opportunities to offer bespoke tariffs to corporate customers. That will be balanced by tighter wholesale regulation for corporate users on the copper access network," KPN said in a statement.

The regulator, whose proposals are subject to discussion by the companies concerned and European Commission approval, said there was not enough competition on the business-to-business market for phone line services, where KPN is still dominant.