Dutch business VOs focusing more and more on total solutions

Dutch business MVNOs increased their customer base to 643,000 at the end of September 2017 from 620,000 six months earlier. KPN's brand Telfort is the biggest provider, followed by sister company Yes Telecom, according to the latest research by Telecompaper. KPN's virtual brands together account for almost three-quarters of Sims at business VOs in the Netherlands. 

Telfort Zakelijk growing, helped by Galaxy 

Market leader Telfort Zakelijk showed growth in the second half of 2017, mainly thanks to taking over the mobile-only customers of Galaxy. The company told Telecompper that this involved the transfer of around 20,000 Sims. Galaxy's Job Kunst said the company wanted a provider that could offer the same level of service with as little change as possible for customers. With Telfort, customers will be able to remain on the trusted KPN network. The acquired Sims include 10,000 issued by the agricultural association LTO. Galaxy has several such partnerships with industry groups. The other acquired Sims are at private organisations, such as transport or security companies. 

Telfort Zakelijk offers both mobile and fixed-mobile packages. While mobile-only likely makes up most of its base, the operator focused in promotions in the past year on the fixed-mobile offer.

Yes Telecom becomes solutions provider through acquisitions 

The same as Telfort, KPN's other business brand Yes Telecom grew its mobile customer base, making it the second-largest provider on the market. Yes Telecom's share of the virtual mobile market is estimated at just over 30 percent. 

Yes Telecom has grown in recent years through a number of acquisitions. After MobileService in 2014 and Dekatel in 2016, the company acquired VrieService in 2017, strengthening its position in the SME segment and especially the north of the country. In addition to its mobile-only portfolio, the company offers fixed-mobile services. In March 2017, Yes Telecom announced plans to offer fixed services, a logical step in its transition from mobile provider to solutions provider. It's also completed the integration of Dekatel into Yes Telecom. 

Voiceworks exceeds targets 

Voiceworks is another all-round provider. In 2012, the company started offering a total solution, bundling fixed and mobile services on its own platform. In March 2016, Voiceworks had 25,000 Sims and said it aimed to double that to 50,000 within two years. The company has largely exceeded that according to our latest count. We expect much of the growth is due to its increased focus on offering integrated fixed-mobile services. 

Truphone growing with mobile-only 

Truphone also reported growth in the latest period. The company takes a different position in the market than most other business players, offering only mobile services with a focus on international callers. It's niche market is business employees who travel often. 

The other business players did not show growth during the six-month research period. MVNE Private Mobility supports 28 smaller VOs, mainly IT resellers who offer mobile as part of a cloud telephony service. The market here is very fragmented, with small players often having also very small customers with only a handful of Sims. 

The other players, such as SpeakUp, Eilie and Intercity Technology, were unchanged compared to our last report. They often have long contracts with customers, limiting the number who switch provider. 

More takeovers in 2018? 

Apart from Truphone, the business VO market shows a clear shift from mobile-only to integrated fixed-mobile offers. This was already a trend among smaller providers, and the bigger players such as KPN's Telfort and Yes Telecom are now stepping up their efforts. This may lead to pressure on smaller players, unable to match the pricing of KPN's brands. The two companies were not so long ago independent operators, with a focus on personal services and customised offers. These qualities, along with KPN's scale benefits, could make it difficult for smaller players to compete, leading to more takeovers in the sector in 2018.