From Norway I travelled to the country of my birth, the Netherlands (18 million inhabitants in a country half the size of Tasmania). I have followed the Duch market over several decades and I have organised government-led trade mission between our two countries in relation to broadband and smart cities. So, it was with interest to update myself on what currently is happening here. Obviously, I had to make some selections but there are links to further readings.
It was good to see that the Netherlands remains a digital and technological leader in Europe, often called the continent’s most connected country. Its advanced digital infrastructure, supportive government policies, and innovative ecosystems make it a top destination for IT and technology companies. Major IT hubs with smart cities such as Amsterdam, Rotterdam, The Hague, Utrecht, and Eindhoven are examples of city-based innovations. The City of Amsterdam has also provided on several occasions updates about its smart city developments at conferences I and others have organised in Australia.
The Dutch ICT sector, comprising over 82,000 companies, thrives on a growth-friendly ecosystem supported by strong digital infrastructure and a tech-savvy workforce. Despite challenges like staff shortages and economic uncertainties, the industry shows strong growth, driven by demand for teleworking software, cybersecurity solutions, and AI applications.
Cross-sector collaboration is key to Dutch innovation, integrating technology with agritech, gaming, medtech, and sustainable energy. The country attracts established IT giants and innovative startups, with companies like IBM, Microsoft, Google, and Oracle establishing their European operations in the Netherlands. Addressing challenges such as high wages for IT specialists is crucial to maintaining growth.
A key problem for the Dutch ICT market is that power grid connection availability has become a challenge as the data centre sector expands alongside accelerating electrification. From January 2024, new hyperscale data centres are restricted in most locations due to grid constraints.
Broadband Internet
In the fourth quarter of 2023, 430,000 new fiber-optic connections were established, bringing the total to 7.13 million. Households with fiber internet subscriptions rose to 2.8 million, an increase of 110,000 compared to the previous quarter. Conversely, broadband subscriptions via copper lines dropped by 52,000 to 1.86 million, and cable broadband subscriptions decreased by 30,000 to 3.32 million.
KPN and VodafoneZiggo remain dominant in the broadband market, with VodafoneZiggo holding a 40-45% market share and KPN 35-40%. Odido captures 10-15% of the market, and Delta Fiber holds 5-10%. Other providers collectively account for 0-5% of the market share.
Mobile
The number of mobile connections remained steady at 22.2 million in Q4 2023. However, SMS usage declined by 2.89% to 566 million messages, while the number of call minutes on mobile networks increased by 700 million to 9.7 billion. Mobile data usage saw a reduction, with devices using 06- or 097-numbers consuming 540 million gigabytes of data, a decrease of 18 million gigabytes.
Odido led the mobile market with a 30-35% share, followed by KPN with 25-30% and VodafoneZiggo with 20-25%. Mobile Virtual Network Operators (MVNOs) collectively held 10-15% of the market.
Machine-to-machine (M2M) applications continued to grow, with 700,000 new connections in Q4 2023, totaling 18 million. These include applications like connected cars and devices such as smoke detectors, alarm systems, and smart meters that communicate with management systems via the internet.
Advancements in Artificial Intelligence (AI)
Recognising AI’s potential, the Dutch government has implemented a comprehensive AI strategy. The 2019 Strategic Action Plan for AI focuses on advancing AI knowledge, safeguarding public interest, and promoting ethical guidelines. The NL AI Coalition, a partnership of government, industry, and academia, accelerates AI developments. Companies like ABB, Brain Corp, and Wonderkind are leveraging the Netherlands as a testing ground for groundbreaking AI solutions.
Leading in Cybersecurity
The Netherlands is a cybersecurity leader, housing the National Cyber Security Centre (NCSC) and the Hague Security Delta (HSD), Europe’s largest security cluster. This robust ecosystem attracts international security agencies like Europol and NATO. Cybersecurity companies such as FOX IT, Thales, and Palo Alto are drawn to the Netherlands, benefiting from its advanced infrastructure and cooperative environment.
Pioneering Digital Health
The Netherlands excels in digital healthcare, offering significant opportunities for foreign companies. The country’s emphasis on quality data-driven research has attracted global organisations like the Healthcare and Information Management Systems Society (HIMSS). Approximately 98% of Dutch healthcare professionals use digital health records, and all hospitals have Electronic Health Records (EHR), driving advancements in telemedicine and personalised health solutions.
Paul Budde