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Dutch mobile market shows strong seasonal growth in Q2, revenues up 1.2% to EUR 1.62 billion

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According to Dutch market research company, Telecompaper, the Dutch mobile industry generated EUR 1.62 billion in revenue in the second quarter of 2008, showing an increase of 1.2 percent compared to same quarter last year and growth or 6.3 percent when compared to the first quarter. This increase was due to the continued growth in non-voice revenue and strong seasonal growth in total revenues.

Compared to the same quarter last year, non-voice service revenue continued to increase, growing 25.5 percent, while voice revenues fell 4.5 percent year-on-year, mainly due to cuts in MTA and roaming prices.

For the first time, Telecompaper is releasing a five-year forecast for the market. The Dutch mobile market is expected to show a compound annual growth rate (CAGR) of 3.7 percent during the period 2008-2013, reaching a value of around EUR 7.7 billion in 2013.

"Growing demand for mobile non-SMS data services will drive overall market growth, but reductions in roaming prices and mobile termination rates will keep voice revenues under pressure in the short term," said Alejandra van de Roer, Telecompaper senior analyst and author of Telecompaper's quarterly mobile market monitor for The Netherlands.

This was a strong seasonal second quarter for all operators, as all showed at least 5 percent growth compared to the first quarter, says Telecompaper. Vodafone Netherlands and KPN realised the strongest quarterly growth, while Vodafone was again the only operator able to increase revenues year-on-year. As a result, Vodafone saw its revenue market share increase 1.9 percent points to 29.4 percent, boosting its number-two position in the market. KPN saw its share drop to 45.8 percent, down 1.1 points, while T-Mobile lost 0.7 points for a share of 24.9 percent. In terms of subscriber numbers, the Dutch market grew by 388,000 in the second quarter, to a total 20.044 million customers. Market penetration rose to 122.0 percent at the end of June, from 112.2 percent at the end of Q2 2007.

While KPN remained market leader with 45.9 percent of all subscribers, the incumbent operator lost market share (1.8 percent) to the other operators. T-Mobile (including Orange) increased slightly its strong second place position, reaching a market share of 26.3 percent, and Vodafone was also able to increase its market share, to 21.8 percent from 21.2 percent in the same quarter last year. The total number of mobile subscribers is expected to reach 22.6 million by 2013, showing a CAGR of 1.9 percent, according to Telecompaper estimates.