Regulatory

VodafoneZiggo is subject to sector-specific regulation enforced by different regulatory authorities, most notably the Authority for Consumers & Markets (ACM) and the Authority for Digital Infrastructure (RDI). Our Regulatory Affairs department regularly consults these and other government stakeholders and closely monitors the latest regulatory developments to minimise the risk of adverse regulatory pressure.

EUROPEAN DEVELOPMENTS

Many of the laws and regulations relevant to VodafoneZiggo originate at EU level. The EU is currently discussing various proposals, and we expect the introduction of new or amended laws and regulations in the near future, including:

  • The Artificial Intelligence Act and the Artificial Intelligence Liability Act, which regulate the development, deployment and use of artificial intelligence systems.

  • The Gigabit Infrastructure Act, which will replace the Broadband Cost Reduction Directive and includes measures to reduce the cost of deploying gigabit electronic communication networks.

  • The Accessibility Act, which will introduce accessibility rules for a number of key products and services, including telecom services, to ensure full and equal participation of people with disabilities.

  • The e-Privacy Regulation, which will replace the current e-Privacy Directive.

  • The Data Act, which lays down rules on data-sharing in business-to-government relations and business-to-business relations to improve data access and use.

  • The Cybersecurity Resilience Act, which establishes common cybersecurity standards for products (especially connected objects) and services.

All of these initiatives could have an impact on our business from 2024 onwards and are therefore being closely monitored.

FIXED MARKET REGULATION

ACM performs five-yearly market analyses and can impose (access) obligations on market players as a result. There are currently no access obligations in place.

Following the Trade and Industry Appeals Tribunal (‘College van Beroep voor het bedrijfsleven’) annulment of ACM’s market analysis decision in March 2020, a cable access obligation on VodafoneZiggo and access obligations on KPN were abolished. ACM has since investigated the need to re-regulate the fixed broadband market. A draft market analysis decision was expected in the first quarter of 2022, but was put on hold after KPN offered to improve the wholesale conditions of its fibre-to-the-home (FttH) network. In August 2022, ACM made the KPN offer binding for a period of eight years via a so-called commitments decision.

In July 2023, ACM published a draft market analysis in which it found the fixed market to be competitive, mainly driven by the availability and future roll-out of open FttH networks. After a market consultation and notification with the European Commission, a final decision was published in December 2023. At the same time, ACM published a draft and final decision regarding YouCa’s request for symmetric access to our fixed network in the city of Amsterdam. ACM found there was no basis to grant such a request. Note that YouCa lodged appeals against the market analysis and symmetric access decisions. These appeals are pending.

SPECTRUM LICENCES

The Ministry of Economic Affairs and Climate Policy is responsible for spectrum management and the granting of spectrum licences. A spectrum licence confers the right to use a specific set of frequencies in a specific band for a specific period of time and under specific conditions, such as coverage obligations. Spectrum licences for mobile services are usually assigned via an auction. In addition to one-off licence fees, there are annual supervision costs, based on the amount of spectrum held.

We currently hold approximately 33% of the total mobile spectrum licences in the Netherlands, with which we provide 2G (GSM), 4G (LTE) and 5G communications. In 2020, we acquired licences in the 700, 1400 and 2100 MHz bands for a period of 20 years. We also hold 800, 900, 1800 and 2600 MHz licences that will expire in 2030. The Dutch government was planning to auction 300 MHz in the 3.5 GHz band for mobile services in the second half of 2023. This auction was delayed as a result of court rulings regarding the protection of satellite services and is now expected to take place around May to June 2024 at the earliest. On 23 February 2024, VodafoneZiggo announced its intention to participate in the 3.5 GHz auction (new window).

SECURITY AND CONTINUITY

As a provider of public electronic communication networks and services, VodafoneZiggo is subject to specific obligations in the Dutch Telecommunications Act to safeguard the security and integrity of our networks and services. We are also obliged to ensure the continuity of electronic communication services in the event of disturbances to or outages of the electricity grid. Further to the Security of Network and Information Systems Act, the Dutch implementation of the EU’s Security of Network and Information Systems (NIS) directive, we are also required to notify RDI and the National Cyber Security Centre (NCSC) of (cyber)security and integrity breaches that materially threaten the continuity of our networks and services.

On 16 January 2023, the EU’s NIS2 directive (a revision of the original NIS regime, aiming to tackle its limitations and respond to changes in the cybersecurity threat landscape) and Critical Entities Resilience Directive (CER; regulating aspects of physical security) entered into force. Under these directives, which must be transposed into Dutch law by 17 October 2024, VodafoneZiggo will be designated an operator of essential services and will therefore be subject to the strictest obligations of NIS2 and CER.