13th Report on the Implementation of the Telecommunications Regulatory Package - 2007

For Belgium, the EU reports a slowing down of broadband access development. Regulatory appeals are systematically lodged . Most new entrants still use the incumbent’s bitstream offer.  Our mobile termination rates are still among the highest in Europe and a cost-based 3-year gliding path is imposed. Some positive echo’s as well thanks to various virtual network operators entering.
 
The complete report can be read on:

http://ec.europa.eu/information_society/policy/ecomm/library/communications_reports/annualreports/13th/index_en.htm

It is available in all European languages.

You find the fact sheet for Belgium on http://ec.europa.eu/information_society/doc/factsheets/13thimplementation/9-2-be.pdf

Belgian broadband penetration has remained high (26%) but its rate of growth decreased to less than three percentage points. Retail prices for internet access remain relatively
high. Mobile traffic is increasing and retail prices have fallen. However mobile penetration is still lower than the EU average. The incumbent dominates the market for fixed
communications, and has even increased its market share to 70% of market share, a rise from 65% in 2006, due in particular to flat rate packages and bundles of services.

At 26%, Belgium's broadband penetration remains high, well above the EU average of 20%. However, Belgium risks falling behind Europe's best performers as growth is slowing down. In
addition, retail prices in particular for high speed broadband continue to be high.

The market share of new entrants has only increased by 1 percentage point, mainly through cable connections.

In the meantime, bundled services have continued to develop considerably in Belgium, both on the incumbent’s network and on cable.

Number portability on the rise. The amount of mobile and fixed numbers ported has considerably increased over the last year.
More than 500 000 mobile numbers have been ported, one fifth of total numbers in the market.

Mobile termination rates fell from € 0.15 to €0.10 (national average rate), a level that is very close to the European average. Retail prices have
fallen.

The national regulator, BIPT/IBPT, wants more symmetry on mobile termination rates, which operators charge to connect calls from other
operators' networks. By mid-2008 there will be symmetry between the first and the second operator, and less asymmetry with the third
operator.

Areas for improvement
Systematic appeals create legal uncertainty. Decisions of the regulator are systematically appealed, and most cases are still pending. This
has created considerable legal uncertainty, since Belgium procedures are lengthy and decisions may be annulled retroactively by the court while the
regulator may not adopt retroactive decisions.

Dispute settlement procedures at the Competition Council are hardly used. There are doubts as to whether the Competition Council has the necessary staff and expertise to deal with
telecoms issues.

Incumbent still dominates fixed market

Traffic volumes in the fixed market have sharply decreased (by 7.6%), along with the number of active carrier pre-selection lines. This may be
due to increasing fixed-to-mobile substitution. In the meantime, the market share of the incumbent rose both in volume (from 65% to 70%) and in value (from 67% up to 71%), largely
thanks to flat rate packages and bundling offers.
It seems there is room for more effective competition in this market. Only one competitor had a market share of some significance (10%), five others had a small share
varying between 2% and 5% (in value).