Netherlands: Latest telecom regulatory developments
Written By
Associate
Netherlands
I am an associate in our Commercial and Regulatory & Administrative practices in The Hague. Having focused on the intersection of technology and law since university, I advise a wide array of clients in the technology and communications sectors. I regularly assist clients with both regulatory matters, as well as questions regarding contracting.
Partner
Netherlands
I am a partner in our Commercial, Privacy & Data Protection and Regulatory & Administrative Groups in The Hague.
We provide an update on three recent developments from the Dutch telecommunications industry. We cover the notification of a new decision on fixed and mobile call termination, a fine imposed on Vodafone for security lapses in interception systems, and the ACM's exploration of the 2G and 3G network phase-out.
ACM notifies EC of new decision on fixed and mobile call termination
On 26 November 2024, the Dutch Authority for Consumers and Markets (ACM) submitted a draft decision on the market analysis for fixed and mobile call termination to the European Commission for notification. The analysis focused on wholesale markets for call termination on both individual public telephone networks at fixed locations and individual mobile networks.
The ACM identified potential competition issues and significant competition risks, prompting it to continue existing access and transparency obligations for all call termination providers. The ACM clarified the conditions under which requests from call termination and transit providers are reasonable and specified the criteria used in the assessment. KPN remains the sole provider offering call termination services with necessary facilities, such as collocation and Ethernet services, and will continue to be subject to tariff obligations.
Initially, the ACM planned to impose obligations only on major providers like KPN, VodafoneZiggo, and Odido, but following consultation, it extended access obligations to all providers. The revised decision was submitted to the European Commission, which has a month to respond before the ACM can finalise it.
Vodafone fined €2.25 million for security lapses in interception systems
On 21 May 2024, the Dutch Inspectorate for Digital Infrastructure (RDI) fined Vodafone €2.25 million for security lapses in its interception system. The investigation revealed that Vodafone's system did not meet legal requirements, with issues including a non-compliant security plan, inadequate personnel screening, and insufficient system security. Although no unauthorised access was detected, the system's vulnerability prompted the fine. Vodafone has taken corrective actions, and the risks have been mitigated according to the RDI. Vodafone appealed against the publication of the fine, but the court upheld the decision, emphasising the lack of external logging and detection. The substantial administrative fine was deemed appropriate, and the RDI published it on 22 October 2024.
ACM explores phase-out of 2G and 3G networks in the Netherlands
With the ongoing advancement of 4G and 5G technologies, the ACM published research on 17 December 2024, regarding the planned phase-out of the less commonly used 2G and 3G networks. While this transition offers opportunities for innovation and efficiency, it also impacts consumers, businesses, and telecom providers. The ACM stresses the importance of timely communication from mobile network operators (MNOs) to users about the phase-out and its implications. It urges MNOs to carefully consider potential issues, especially in international contexts, and to identify business users who may still rely on 2G and 3G systems. The ACM suggests offering extended 2G or 3G services for a fee to those users, such as energy sector smart meter operators. KPN has delayed the 2G phase-out, providing more time to address potential issues. The ACM continues to monitor progress and encourages stakeholders to report any problems.
