Date:08/08/11

Netherlands smartphone penetration reaches 42%

Smartphone penetration in the Netherlands grew 30% from a year earlier, research firm Telecompaper said Thursday, but operators are struggling against decreasing service revenue as consumers turn to alternative services like Skype instead of placing calls.
In the second quarter, 42% of Dutch consumers were using smartphones, up from 30% a year earlier. The popularity of smartphones among consumers aged 15 to 29 is even higher, with 60% using them.
Meanwhile, the three mobile operators of the euro zone's fifth-largest economy said they will make usage of the mobile Internet more expensive in an attempt to mitigate slumping sales as consumers use Voice Over Internet Protocol services like Skype or instant messaging like Whatsapp instead of traditional calls or text messages.
In the quarter ended June 30, Royal KPN NV's mobile service revenue in the Dutch consumer market was down 8.7%, while Deutsche Telekom AG's T-Mobile service revenue decreased 6.8%. Vodafone PLC, the third player in the Dutch mobile market, didn't report comparable figures.Among mobile operators, KPN's Hi brand, Vodafone and T-Mobile show particular significant increases customers using smartphones. T-Mobile, at 29%, has the largest share in the postpaid smartphone market, while Vodafone is the market leader in prepaid smartphones with a 32% share, Telecompaper said.
Since the beginning of this week, Vodafone has limited data allowances in its rate plans. T-Mobile will follow with similar measures Aug. 15 and KPN will do so Sept. 15. A new law recently came into effect, banning the country's mobile network providers form blocking or charging services like Skype or Whatsapp.

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