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Dear Mrs. Kroes,
As a Belgian and European citizen, I am increasingly concerned about the enduring situation regarding broadband internet (and telecommunications in general) in Belgium. The broadband internet market is currently neatly divided between two large Internet Service Providers (ISP's) , former monopolist and ADSL-provider Belgacom and Cable-provider Telenet. For the last 5 to 10 years the internet market in Belgium can be described by a profound lack of competition, characterised by strictly imposed (extremely conservative) monthly data transfer limits, unmodernised down- and upload speeds, and a continuous rising of tariffs of the telecommunications products combined with less & less value for money. All the while both companies have made considerable profits in the past years.
Test-Aankoop (
http://www.test-aankoop.be), a Belgian Consumer Organisation and Magazine, which exists for over 50 years and is an authority in Belgium regarding consumer interests, has concluded that the current Belgian situation is one of a duopoly, in which Belgacom controls the ADSL market and Telenet reigns over the Cable market. Test-Aankoop directly accuses the Belgian State for this situation, and explains that the interests (shares) of the Belgian government in both companies inhibits any new competition and future liberalisation of the Belgian broadband (telecommunications) market.
We hope that the European Commission can and will act upon the current situation, which is a flagrant violation of the economic principles of the European Union.
You can find the official article (in dutch) at
http://www.test-aankoop.be/map/src/446343.htm . I've added an (unofficial) translation to english:
Internet : better and cheaper at the neighbouring countries
Belgian Consumer Magazine/Organisation Test-Aankoop has made an international comparison of the internet tariffs in 8 countries. Test-Aankoop compared the rates of different internet service providers in eight European countries (Belgium, Netherlands, France, Germany, Italy, Portugal, Spain and the United Kingdom) for 3 kinds of internet users (light, normal, intensive) and one combination packet (internet + unlimited telephony).
For the “light”-formula, the cheapest offer in Belgium is 70 % more expensive than the cheapest formula in The Netherlands, and even then, it still isn’t necessarily technically superior. Regarding regular internet formulas, the Belgian formula at lowest price is still 68% more expensive then the cheapest French offer, and technically it is ranked as one of the worst. For “intensive usage” internet products the cheapest Belgian product is a staggering 118% more expensive than the cheapest French internet service provider. For these first 3 types of internet usage, Belgian ISPs Telenet and Belgacom consistently rank within the last 5 places of 30 formulas in total. The inferior technical quality of Telenet and Belgacom’s products are reflected in low down- and uploadspeeds. Belgium and Portugal are also the only countries who still impose rigid monthly data limits on their customers.
If the next government wants to achieve the proclaimed goal of the current one: “internet for all”, then the conditions for it will have to be fostered: a substantial reduction of the participation (shares) of the Belgian state in Belgacom, a stronger regulator (BIPT), and finally placing of the local network under an independent network regulator.
Test-Aankoop evaluated the situation and concluded:
1. Belgium is no longer competitive compared to the other European countries; regarding down-and upload speeds we have been surpassed substantially.
2. For their 3 formulas of internet usage, Belgacom and Telenet demand a price that is 3 to 4 times higher than the cheapest ISP in any of the neighbouring countries (often, France was cheapest).
3. The ADSL-formulas of former monopolist Belgacom belong to the weakest in this international comparison, yet are expensive nonetheless. Contrary to the other countries in the comparison, there were no price drops during the last few years.
4. The alternative Belgian internet service providers don’t offer any spectacular adsl-formulas for the Belgian market either, as they are in one way or another dependent on Belgacom.
5. Broadband access through cable is okay from a technical point of view (download- and uploadspeeds, not data limit), but still expensive.
6. Belgium, Portugal, and some British ISPs are the only ones to impose a strict limit on monthly data transfervolumes for all usage profiles. All other countries offer unlimited surfing.
7. A Belgian combined broadbandinternet + unlimited telephony package rates average, but yet again, the prices of our providers are twice as high as the French, British and Dutch.
Lack of Competition: Belgian Government is responsible
According to Test-Aankoop, there’s a lack of competition on the Belgian internet market. There is no free market, but rather a duopoly of Belgacom (adsl) and Telenet (cable). Those two providers both have their own network and their own products, and as a result, they can keep the prices artificially high. For all 3 types of internet usage, Belgacom and Telenet are 3 to 4 times more expensive than the cheapest provider. The deficit in competition has multiple causes, concludes Test-Aankoop:
1. The Belgian government owns half of the Belgacom shares, and participates in Telenet, thus rendering itself unable to act in a neutral manner.
2. Because the EU-directives are incorporated into Belgian law in a systemically late and incorrect manner, Belgium doesn't have a good reputation with possible new market players. Thus yet another obstacle for innovation.
3. The division of competences between the different Belgian governments (Federal, Flemish, …), also deters possible newcomers.
4. It should fall on the BIPT (Belgian regulator for postal services and telecommunication) to correct the current situation, but the regulator lacks the power (financial means and staff) to do so. It has to be noted that the BIPT could actually impose fines when Belgacom opposes free market regulations, but in reality this happens rarely.
Change is urgent
If the next government has the ambition to make internet accessible for all, then it urgently has to do the following:
- Reducing their stakes in Belgacom
- Reinforcing the BIPT: the regulator will need to adopt a stronger policy, for this it needs the necessary means, competences and judicial power.
- Last but not least, placing of the local network under an independent network regulator.
France, which ranked well in this international comparison, already offers an 'unbundled local loop' on a third of its network's connections (so no telephone subscription is needed for an internet connection). Test-Aankoop hopes that the Belgian network-providers will follow this example, allowing competitors access to the network at a reasonable price, and waits for a new Belgian government that is willing to ensure true competition can take place on the Belgian market.
The article of Test-Aankoop has been reported in several Belgian newspapers, including De Standaard, De Morgen, Het Nieuwsblad, De Financieel Economische Tijd.
Examples can be found below:
http://www.standaard.be/Artikel/Detail. ... d=FG1CISUB
http://www.tijd.be/nieuws/binnenland/ar ... Id=2946316
Sincerely,
naam hier
