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Belgian consumers would benefit from 4th telecoms provider, study finds

The arrival of a fourth player in the telecoms market, alongside Telenet, Proximus and Orange, could bring down the prices of mobile communications, internet or television by 13%, according to a study commissioned by the consultative committee and reported in De Morgen newspaper on Wednesday. More news about Belgium telecoms find out below.

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Frequencies for the 5G network will be made available as planned but the federal government wants to reserve part of the network for a potential new player in order to open up the market and lower prices for consumers.

At a committee meeting in February, the federal minister for telecoms, Petra De Sutter, tabled a plan for opening up the market to a fourth operator, but her proposal was met with opposition on both sides of the language divide. On the one hand, Flanders fears a distortion of competition. On the other, the Francophone side is concerned about the effects the new technology may have on health and the environment. De Sutter therefore commissioned a study on these effects.

READ MORE: Belgium Has The Most Expensive Telecom Prices In The European Union

The study shows that a fourth operator would be advantageous to consumers. A price war – an expected consequence of a new major player entering the market – could cause prices to fall by 13%. In addition, these favourable prices would potentially convince more people to connect, with an estimated rise of 10% in take-up.

However, the concerns mentioned back in February remain justified. The gains from mobile services would in turn fall by 40% and the energy bill would rise by 15%, as would airwave emissions. In Brussels, where the standards are extremely strict, this is a problem.

“I respect the autonomy of the regions,” acknowledged De Sutter. “If a region absolutely does not want a fourth operator, then progress remains blocked.” belgium telecoms

“However, this is a unique opportunity as the auction sets the spectrum allocation for 20 years,” she added. “If we now close the door to a fourth actor, then we are de facto installing a ‘triopoly’.”

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