Belgian mobile operators slowed the annual decline in service revenues in Q3 to half the rate of decline seen in Q2 as coronavirus restrictions were eased over the summer and demand for data services supported postpaid growth. The number of customers continued to increase, passing 12 million for the first time, research by Telecompaper shows. 

Service revenues fell 3.3 percent year-on-year in the third quarter to EUR 682 million, compared to a 7.8 percent annual decline in Q2. On a quarterly basis, revenues rose 1.2 percent in the third quarter, supported by the steady increase in the share of postpaid subscribers. The share of prepaid in the total customer base fell to 12.5 percent of Sims from 14.6 percent a year earlier. 

Customer growth returned to positive net additions of over 144,000 in Q3, compared to a small drop in numbers in Q2 when most shops were closed during the first lockdown. All three operators showed positive customer growth, and net additions were even higher than in Q3 2019. This took Belgium past 12 million mobile customers for the first time, compared to a population of 11.5 million.

"Growing demand for bigger data bundles is helping offset some of the impact of reduced roaming and SMS, but Belgian operators still are unable to grow ARPU, leading to a continuous fall in service revenues," said Marion ter Welle, Telecompaper research analyst for the Belgian market. "With new lockdown measures in place for much of Q4, service revenues are unlikely to improve much. If the confinement measures are lifted in mid-December as planned, the operators could still get a final boost from year-end smartphone offers."

The above figures come from Telecompaper's quarterly data sheet on the Belgian mobile market, which covers all the KPIs for the industry and is available now for purchase. For more information, contact research@telecompaper.com.