More households opt for mobile phones

13th November 2003, Comments 0 comments

11 November 2003 , AMSTERDAM — The number of households that only use a mobile phone is growing rapidly, with Dutch telecoms company KPN estimating that 560,000 homes no longer have a fixed landline.

11 November 2003

AMSTERDAM — The number of households that only use a mobile phone is growing rapidly, with Dutch telecoms company KPN estimating that 560,000 homes no longer have a fixed landline.

KPN chief Ad Scheepbouwer said 8 percent of the seven million Dutch households no longer have a landline, compared with 4 percent 12 months ago. "This development is continuing," he said.

Furthermore, with 12 million mobile phone connections in the Netherlands, three-quarters of the Dutch population has a mobile phone and despite the fact that calls between two landline telephones remains cheaper, an increasing number of people are opting for the convenience of a mobile.

If someone wants to contact someone via their mobile phone, they are advised to use another mobile because it is cheaper than using a landline, newspaper De Volkskrant reported on Tuesday.

And a growing number of consumers are thus opting to do away with the landline, which commonly costs EUR 17.79 per month prior to even making a telephone call. This is negatively impacting on KPN income and despite the fact the telecoms firm also offers mobile services, the majority of turnover is going to its competitors.

Scheepbouwer said the trend in the Netherlands for households to abandon their landlines remained moderate, the same as in Britain. But he said the tendency in Spain and Austria to switch over was much quicker.

KPN's landline turnover is also falling due to competitor Tele2, but it is successfully compensating the trend with its ADSL internet connections. Despite this success, telephone calls via the internet are also expected to become increasingly popular.

Amid media speculation of hundreds of KPN job losses recently, company vice president Theo Borgert said last month that the company intended to lay-off 2,500 workers between 2004-06.

Scheepbouwer has dismissed the claims, but also countered his statement by admitting that employment remained under pressure.

KPN has cut 1,000 workers from its 19-000 full-time workforce in the past 12 months and has struggled financially after the telecoms boom of the 1990s. The company only returned to profitability late last year.

[Copyright Expatica News 2003]

Subject: Dutch news

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