In the Netherlands, having access to two broadband competitors isn’t enough to guarantee broadband competition, and Dutch telecom regulators are not about to deregulate Internet service in the country until consumers have more choices for broadband access.

The Dutch telecom regulator on Friday announced it will keep wholesale access regulations in place for an extra three years to guarantee KPN – the former state-owned telephone company – plays fair with competitors.

“If ACM were not to step in, there would be too little choice: Dutch telecom company KPN and cable company UPC/Ziggo would then dominate the market,” says the Authority for Consumers and Markets (ACM) in a written statement. “In ACM’s opinion, having just two providers in these markets cannot be considered healthy competition.”

“Furthermore, KPN and UPC/Ziggo are challenged by their competitors to continue to invest in their networks and to innovate,” said Henk Don, a board member of ACM. “As a result, faster and better connections become available in the Netherlands.”

KPN

The Dutch telephone and mobile provider will be required to continue allowing competitors such as Vodafone and Tele2 access to KPN’s landline and fiber to the home networks to offer competitive broadband service. ACM reports that Dutch consumers are saving at least $312 million a year in lower Internet access pricing just by forcing KPN to allow other companies to compete using its network.

KPN isn’t hampered by the forced openness, because ACM has also given the phone company relaxed operating rules to allow it to invest in DSL upgrades including vectoring and the forthcoming G.Fast standard, which could dramatically boost broadband speeds.

Most Dutch consumers, like those in North America, realistically have a choice between one telephone and one cable company — usually Ziggo (currently merging with UPC), for broadband service. But unlike in the United States, Dutch regulators have remained wholly unconvinced an effective duopoly is subject to enough competitive pressure to protect consumers and nascent competition from upstarts. Therefore, ACM has applied regulatory checks and balances to protect the marketplace and consumers from abusive pricing and service practices.

U.S. telecom companies argue that regulations hamper investment and delay network improvements. In the Netherlands, where broadband speed rankings exceed the United States, prices are also lower.