Telecommunications in Belgium: A Comprehensive Overview of the Sector

Belgium's telecommunications sector is a complex and competitive market, with multiple operators offering a range of services to consumers and businesses.

The country has a highly developed telecommunications infrastructure, with a high-speed internet penetration rate of 85% as of 2020.

Belgium is home to several major telecom operators, including Proximus, Orange Belgium, and Telenet, which offer a range of services including fixed-line and mobile telephony, as well as internet and TV.

These operators have invested heavily in network upgrades, resulting in faster and more reliable connections for customers.

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Digital connectivity development is a key priority in Belgium, with a national broadband strategy incorporated into the broader policy strategy Digital Belgium. This strategy sets five priorities: digital infrastructure, digital confidence and digital security, digital government, digital economy, and digital skills and jobs.

The government has launched a national plan for fixed and mobile digital connectivity to eliminate remaining white areas where high-speed services are unavailable. This plan aims to map network coverage and identify white areas, facilitate the rollout of digital connectivity, encourage investment in these areas, and create support for fibre and 5G rollout.

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A special government unit will be set up to implement the plan and monitor progress, while a Broadband Competence Office will deal with cooperation between public and private stakeholders. The plan is built around five axes, including mapping network coverage, facilitating the rollout of digital connectivity, encouraging investment, creating support for fibre and 5G, and establishing a cell Broadband within the FPS Economy.

By reducing administrative burdens and lowering rollout costs for network operators, the government is stimulating the rollout of new digital connectivity technologies, such as fibre and 5G. For example, every house being built or renovated in the future will need to be fibre-ready.

To assess the need for permit exemptions and identify opportunities to further digitalize permit application procedures, Belgium plans to evaluate the current system. This will help improve the digital availability of information and encourage access to the physical infrastructure of public bodies.

In terms of digital connectivity mapping, the BIPT provides a mapping system for digital connectivity, showing where internet access is available at a particular speed. This helps identify areas where high-performance infrastructure is not yet present and additional measures are necessary.

Several regional portals assist in the coordination of works planning, such as Powalco in the Walloon Region and GIPOD in the Flemish Region. These portals help reduce the administrative burden and facilitate the rollout of digital connectivity technologies.

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Belgium has made significant progress in digital connectivity development, with numerous internet service providers offering various services. In 2007, there were 5.22 million internet users in Belgium, and by 2009, there were 3.048.260 single broadband internet customers in Flanders.

Here are some key statistics on digital connectivity development in Belgium:

Belgium has also made significant progress in 5G development, with the government announcing an agreement with mobile operators to enable the rollout of 5G while respecting local administration's environmental policies. According to data from the 5G Observatory, Belgium had assigned all spectrum in the 700MHz and 3.6GHz pioneer bands by the end of Q3 2022.

Proximus is the largest mobile network operator (MNO) in Belgium, holding a 40% market share with over 5.4 million subscribers.

Proximus has been a dominant player in the market since its launch in 1994, but deregulation led to the entry of new competitors like Mobistar and Base.

Telenet's BASE is Belgium's third MNO, with a 23% market share. It has been an active player in the mobile market since 2006, initially as an MVNO.

Digi, a Romania-based multi-play service provider, has entered the Belgian market by setting up a joint venture with Citymesh to win mobile spectrum in Belgium's 5G spectrum auction.

Belgium Tower Partners is the first independent tower company in the country, formed after DigitalBridge acquired 3,322 towers from Telenet's mobile infrastructure unit for €745 million.

Telenet's tower business had a nation-wide footprint, with a tenancy ratio of 1.2x across its entire portfolio in Belgium.

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The mobile market in Belgium is highly competitive, with four converged operators offering high-quality and competitive services to both businesses and consumers.

The average mobile revenue per user in Belgium is around €17 per month, which is higher than in neighboring countries like the Netherlands, France, and Germany.

Belgium has three licensed mobile network operators (MNO): Proximus (Belgacom), Mobistar (France Télécom), and BASE (KPN), as well as numerous mobile virtual network operators (MVNO).

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Belgium has numerous internet service providers (ISP), with 61 providers in 2003, serving 5.22 million internet users in 2007.

The country code for Belgian websites is .be.

Here is a list of some of the major internet providers in Belgium:

Belgium also has three major fiber-optic cable internet providers: Numéricable for the Brussels region, Telenet for the Flanders and Brussels regions, and VOO for the Walloon and Brussels regions.

The mobile segment in Europe is quite interesting. The average revenue per user for European operators is less than half that of their US counterparts.

In Belgium, the average mobile revenue per user has remained constant at around €17 per month for the past five years, despite inflation exceeding 20% over the same period and mobile data consumption continuing to rise exponentially.

This is a remarkable feat, especially when compared to neighbouring countries like the Netherlands, France, and Germany, which have average mobile revenues of €16, €16, and €14 per month, respectively.

The Belgian telecom market is highly competitive, with four converged operators offering high-quality and competitive services to both businesses and consumers.

Belgium has a diverse range of internet providers, with numerous options available to suit different needs and budgets.

In 2007, there were 5.22 million internet users in Belgium, served by 61 internet service providers.

The country code for Belgian websites is .be.

There are two types of internet providers in Belgium: copper cable internet providers and fiber glass cable internet providers.

Some of the notable copper cable internet providers include Altercom, BASE (KPN), Belgacom, and Destiny.

Belgacom is the only provider that currently offers fixed telephony and digital television in a triple play formula.

In contrast, the three major fiber glass cable internet providers are Numéricable, Telenet, and VOO, all of which offer fixed telephony and digital television in a triple play formula.

Here's a list of some of the notable internet providers in Belgium:

This list is not exhaustive, but it gives you an idea of the many options available in Belgium.

In Belgium, radio is primarily transmitted through terrestrial broadcast antennas, with analog transmissions provided by several companies such as Norkring Belgium and D'Hont Noël.

Digital transmissions are also available through Norkring Belgium, and digital cable operators and internet providers offer radio signals as well.

Public radio in Belgium is controlled by the VRT for the Dutch speaking region and the RTBF for the French speaking region, with the BRF controlling public radio for the German community.

There are numerous private operators in the radio industry, with VMMa being a major competitor in the Flanders and Brussels regions and RTL Group competing in the Wallonia and Brussels regions.

Local channels like Radio 2 Limburg and GO FM also exist, catering to specific geographic areas.

In 2009, the VRT channels held a significant market share of 63.08% in the Dutch speaking region, while VMMa channels held a market share of 23.13% and Corelio/Concentra's joint venture channel held 2.65%.

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Belgium's telecom sector is investing a significant portion of its turnover in infrastructure, with €2.61 billion spent in 2023, equivalent to 30% of the sector's turnover.

This investment ratio is unprecedented in the sector, with telecom companies pouring in massive amounts of capital to keep up with exponentially growing data consumption.

Between €10 and €15 billion will be required in Belgium alone this decade, highlighting the significant investment needs of the telecom sector.

The sector's return on capital employed (ROCE) has fallen below the average cost of invested capital (Weighted Average Cost of Capital, WACC) since 2022, making it difficult for companies to generate returns from their investments.

As a result, telecom investments in Europe declined in 2023 for the first time in seven years, despite the need for higher investment than ever before.

Fixed internet is a crucial part of modern life, and Belgium has a robust infrastructure to support it. According to Agoria's analysis, fixed internet and bundles have seen a significant increase in pressure on revenue and margins since the inflation peak of 2022.

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Prices for fixed internet and bundles without TV have increased only slightly, absorbing inflation up to 2023. However, from 2024, the 3.5% inflation is largely passed on to consumers.

Belgium has numerous copper cable internet providers, including Altercom, BASE, and Belgacom, among others. Only Belgacom currently offers fixed telephony and digital television in a triple play formula.

The country's three major fiberglas cable internet providers are Numéricable, Telenet, and VOO, all offering fixed telephony and digital television in a triple play formula. These providers cater to different regions, with Numéricable serving the Brussels region, Telenet covering Flanders and Brussels, and VOO serving the Walloon and Brussels regions.

Here's a list of some of the notable internet providers in Belgium:

These providers offer a range of services, from fixed telephony and digital television to specialized services and internet access.

Gigabit networks require massive investments to keep up with growing data consumption. Data traffic in Europe and Belgium has been increasing exponentially for over a decade, and fixed data traffic surged in 2020 due to working from home during the COVID-19 pandemic.

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An investment gap of over €200 billion has been highlighted by Connect Europe since 2023. In Belgium alone, between €10 and €15 billion will be required this decade.

The telecom sector has unprecedented investment ratios, with CAPEX investments making up 30% of the local telecom sector's turnover in Belgium. This is equivalent to €2.61 billion in 2023.

However, the sector no longer generates returns from these long-term investments. The return on capital employed (ROCE) has fallen below the average cost of invested capital (Weighted Average Cost of Capital, WACC) in many European countries since 2022.

Investments in telecom infrastructure declined in 2023 for the first time in seven years, despite increasing investment needs. This decline is partly due to rising interest rates and increasing pressure on prices and margins.

The BIPT publishes a fibre map showing FTTH roll-out, which can be found on the BIPT data portal. This map provides a visual representation of the progress being made in fibre deployment.

In Belgium, there were 4.668 million land telephone lines in use in 2007, a slight decrease from the 4.769 million in use in 1997.

The majority state-owned public telephone company of Belgium is Belgacom. Some other notable operators include Scarlet and BASE.

AMP and Deltamedia are important distributors in Belgium's telephone market.

In Belgium, any company that wants to offer publicly available electronic communications services or public electronic communications networks has to notify the BIPT in the sense of the Act of 13 June 2005 on electronic communications (Art. 9 ECA).

The list of registered telecom operators can be found online, providing a clear overview of the companies that operate in this space.

The Broadband Cost Reduction Directive aims to lower the roll-out costs of telecom networks by focusing on sharing infrastructure and co-executing civil works, which can help reduce costs for companies.

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The Belgian telecoms market is regulated by the BIPT, which performs market analyses to ensure competition is adequate. The BIPT can impose obligations on dominant operators if competition is insufficient.

The BIPT's role is to promote competition, contribute to the development of the internal market, and protect users' interests. This involves gathering and analysing information on the supply of digital connectivity services.

The BIPT launched a website, www.fibreinfo.be, to inform end users, operators, municipalities, and property owners about fibre roll-out. This website answers questions about fibre technology, possibilities, rights, and obligations.

The BIPT is involved in the national digital connectivity strategy, specifically in stimulating the roll-out of digital connectivity networks and identifying remaining white areas.

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In the European Union, a key initiative to reduce broadband costs is the Broadband Cost Reduction Directive. This directive aims to lower the roll-out costs of telecom networks by focusing on sharing infrastructure and co-executing civil works.

The directive encourages companies to share infrastructure, which can lead to cost savings. Companies that offer publicly available electronic communications services or public electronic communications networks are required to notify the BIPT in the sense of the Act of 13 June 2005 on electronic communications.

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Sharing infrastructure can be a game-changer for telecom operators. Any company that wants to offer publicly available electronic communications services or public electronic communications networks has to notify the BIPT in the sense of the Act of 13 June 2005 on electronic communications (Art. 9 ECA).

The list of registered telecom operators can be found online, making it easy to see who has notified the BIPT. The list is a useful resource for anyone interested in telecom operators in the European Union.

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In Belgium, radio broadcasting is a significant part of the media landscape, with 79 FM radio stations, 7 AM stations, and 1 SW station in 1998.

Radio stations in Belgium primarily use terrestrial broadcast antennas for transmission.

Analog transmissions are provided by several companies, including Norkring Belgium, Broadcast Partners, D'Hont Noël, and TVVV Sound.

Digital transmissions, on the other hand, are provided by Norkring Belgium.

The public radio in Belgium is controlled by the VRT for the Dutch-speaking region and the RTBF for the French-speaking region.

In the Dutch-speaking region, the VRT channels hold a significant market share of 63.08% in 2009.

The telecommunications market in Belgium is expected to continue evolving, with the recent entry of new players like DigitalBridge and Digi.

In 2022, the federal and regional governments approved a law about the spectrum auction, leaving room for a fourth mobile network operator (MNO) to join the market.

The federal government has expressed interest in encouraging the entry of a fourth MNO to increase competition with the existing three MNOs.

This could bring new opportunities for towercos and end-users, but it would also change the dynamics on the market, which is already considered mature by some.

A joint venture between Digi and Citymesh was assigned spectrum in 2022, and if it becomes the fourth MNO, it would be a significant development for the market.

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Belgium's telecom sector faces a complex web of regulations, making it challenging for operators to navigate. At least 21 new federal telecom rules were introduced during the previous Vivaldi legislature.

The implementation of EU legislation in Belgium often involves "gold-plating", where stricter standards are applied compared to the European blueprint. This results in a patchwork of regulations that can be difficult to understand and comply with.

Ten federal regulations were implemented in a transparent manner, while six were transposed with significant gold-plating. Five specific Belgian regulations were also introduced. Here's a breakdown of the new federal telecom rules:

In addition to federal regulations, the telecom sector also faces a fragmented regulatory framework at the regional level. Radio emission standards differ in Flanders, Wallonia, and Brussels, and are consistently stricter than the European recommendation of 41.2 V/m. This regional gold-plating adds to the complexity of the regulatory landscape.

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In Belgium, telecom operators have rights, but so do building owners. This balance is essential for fair communication services.

Telecom operators have certain rights, but building owners also have their own set of rights.

The offer of fibre services in Belgium can vary depending on the location.

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In Belgium, fibre services are provided by various operators registered with the BIPT.

The operators listed in the BIPT survey offer fibre services, but their services may vary significantly from one operator to another.

Fibre offers in Belgium can depend on the location, meaning what's available in one area might not be available in another.

The BIPT survey contains lists of operators that provide fibre services, even if they don't offer the same services everywhere.

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In the world of offer and rights, it's essential to understand the rights and duties of all parties involved. Telecom operators have certain rights, but so do the owners of a building.

Telecom operators are entitled to certain privileges, such as installing equipment in a building. The owners of a building have rights too, like having control over who installs equipment in their property.

These rights and duties are crucial in ensuring that both parties work together smoothly. The balance between the two is key to avoiding conflicts and misunderstandings.

Ultimately, understanding the rights and duties of telecom operators and building owners can help prevent disputes and ensure a harmonious working relationship.

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