Cutting-Edge Transport and Telecom infrastructure

Thanks to its cutting-edge transport and telecom infrastructure, Belgium is the ideal location for international companies to set up logistics facilities, headquarters or European distribution centers. Belgium has developed highly efficient road and rail networks, inland waterways, thriving airports (in Brussels, Charleroi and Liege) and some of the world’s busiest ports (in Antwerp, Zeebrugge, Brussels and Liege).

Logistics and distribution centers, many of them located in specialized logistics parks throughout the country, are growing rapidly. Major projects now underway will boost the transport sector still further. These include the expansion of Deurganck Dock in Antwerp, APM Terminals in Zeebrugge, and TriLogiPort in Liege; new facilities at the ports of Brussels and Ghent; and new logistics facilities near Brussels and Liege airports.

Belgium’s telecom infrastructure is also one of the most developed in the world. It benefits from comprehensive DSL and cable networks, a strong cable and digital TV sector, and effective competition in the broadband and mobile-telephone segments. Broadband penetration lags behind the European average, but new regulatory measures to promote wholesale and bit-stream access should change that.

Some mobile operators have extensive 3G networks that have been upgraded with HSPA technology, and Belgium’s triple-play market has grown on the back of upgraded cable and DSL infrastructure. The broadcasting sector is characterized by language variations to accommodate the Flemmish and Walloon regions, and is set to be fully digital by the end of 2011.

Belgium’s world-class infrastructure, combined with the country’s strategic location and skilled labor, make it the best base for conquering European markets.

Belgacom

“We are constantly investing in new services for our customers.”

Belgacom, the Belgian incumbent underwent a huge transformation since 1992, to be fully prepared for the opening of the Belgian telecom market in 1998. Ever since, Belgacom managed to keep a strong leader position on Belgium’s telecom market thanks to its full range of cutting-edge services.

The Belgacom Group includes Belgacom S.A. and its subsidiar-ies Belgacom Mobile (Proximus), Skynet, Telindus (a leader in network integration acquired in 2006) and Belgacom International Carrier Services. Belgacom was listed on the Euronext market in 2004; the government remains the main shareholder.

Belgacom has been responsible for a number of ‘firsts’, including Belgium’s first mobile network in 1994 and its first digital television in 2005. Belgacom’s digital TV offer via ADSL transformed the company into a full-spectrum player providing fixed and mobile telephony, fixed and mobile high-speed Internet and television.

Didier Bellens, CEO, explains why Belgacom decided to take its services to the next level.“It was obvious to me that sticking to only the voice business was not enough. We decided to focus on services and customers, not necessarily just technology.We are constantly investing in new services for our customers.”

Cutting-edge services with added value

One of the company’s recent offerings is the All-In-One pack, through which customers get free Belgacom TV connections with a subscription for fixed telephony, high-speed Internet connection (including free mobile Internet connections on weekends) and Belgacom’s Happy Time One service. The value-added package allows customers to make fixed and mobile calls to any number in Belgium. As Belgacom puts it, “Our customers can benefit from convergence to have more freedom, more simplicity, and more value for their money.”

Belgacom has developed a variety of attractive offerings for its corporate customers. Small and medium-sized enterprises and self-employed professionals can benefit from Belgacom’s Bizz Line fixed-line service, Business Backup online, Mobile Internet One and Bizz Happy all-inclusive packages. For large enterprises Belgacom can provide a range of personalized network solutions and security features, including the popular Belgacom Proximus Wireless Office solution.

Highly developed network

Belgacom’s well-developed network is one of its strengths. The company has a Broadband coverage of over 99% of Belgian households. Its fixed-line infrastructure is used by other companies. As Didier Bellens explains, “The fixed-line market has been open since 1998, and any company is free to enter the market and use our network.Competition is good because it makes us better as a company.”

Ongoing investments

To maintain its competitive edge, Belgacom continues to invest in its infrastructure and in new services, even in challenging times. Didier Bellens says, “Belgacom has done a great job in controlling expenses, but that does not mean that we have cut back on smart investments. We have created mobile payment solutions as well as international money-transfer services. Belgacom has invested in a next-generation network, and today has over 8,000 miles of fiber-optic cables.We can deliver high-definition television, and are considered a world leader in that business.”

Although Belgacom holds on to a disciplined M&A strategy, Belgacom keeps its eyes open for opportunities in new telecom ventures in Belgium and beyond. Didier Bellens explains, “We are always looking for strategic partnerships. We are looking to invest in start-up companies with innovative ideas.We also develop new technologies ourselves. This is a good time to make investments in the market.” Belgacom recently announced that it had signed ajoint-venture agreement with the former major shareholder of Scarlet, Pantheres Investments, to create a new small-sized company, Sahara International Ventures, which will acquire broadband assets in developing countries.

Focus on adding value

Five years from now, Belgacom will be an even stronger company, Didier Bellens believes. He says, “We hope to take advantage of the economic crisis by finding new opportunities. Everything we do will be done with a focus on creating value.”

KPN

“This company is more innovative than most telecom companies.”

BASE has brought competition to Belgium’s telecom market, helping to bring prices down and boost service quality.

“We have driven the competitive change that has reduced costs of mobile telecommunications in Belgium by 50 percent since 2003,” explains Stan Miller, CEO of KPN Mobile International. BASE is now the country’s third-largest mobile telecom company.

BASE is a 100% subsidiary of Koninklijke KPN N.V., which offers mobile voice and data services in Germany (E-Plus), Belgium (BASE) and the Netherlands (KPN, Hi and Telfort).KPN now serves 3.7 million customers in Belgium, and 2.1 million of these customers have chosen BASE’s pre- and post-paid solutions. KPN has a 25 percent share in the Belgian telecom market and covers more than 98 percent of the country.

Miller was brought in to turn BASE around in 2002 and since then the company’s revenues have grown from around €200 million to €700 million and its market share has risen from 8 percent in 2003 to 26 percent today. BASE has also raised its subscriber base to 3.7 million and had around €650 million revenue in 2008. It continues to add to its customer base thanks to its reputation for providing value-added products and services.

Rolling out 3g HSPA services

Determined to maintain its growth, BASE has invested around €1.4 billion in its operations in Belgium and now has its own fixed-line network, KPN Belgium. BASE operates a national EDGE network and is rolling out third-generation high-speed packet access (3G HSPA) services in line with increasing demand for mobile data service in both the consumer and SOHO-SME (small office, home office, and small and medium-sized enterprises) market segments. BASE already offers 3G services that enable fast mobile Internet connections via the BASE EDGE network, and its tariffs are the lowest in Belgium.

BASE has successfully carved out a niche in the local telecom market through its ‘challenger strategy’. The company initially focused on setting up its network, which has been ranked the best in Belgium. Now BASE is in position to launch the latest 3G technologies, which will provide the best wireless Internet experience for consumers. BASE will continue to focus on developing mobile Internet products into real alternatives to its current fixed-line Internet offers, and the company will continue to keep its prices attractive.

BASE has held its own in spite of initial conditions that did not favor competition against dominant player Belgacom. As Miller points out, “BASE is now worth a substantial amount of money and we have really changed the market here. Earlier this year the Belgian Competition Council penalized Belgacom, who had to pay a fine of €66.3 million to the state because they had been abusing their dominant market position to squeeze out and overcharge competitors in the market. I am not saying this to knock Belgacom, but rather to show the value of our company.”

Innovation, value for money

Citing the reasons for BASE’s impressive success story, Miller says, “This company is more innovative than most telecom companies and we have developed a multi-brand, multi-partner strategy. We charge rates that are much lower than our competitors’ rates, we invest in our network, and we do it much better.”

In addition to providing rapid connections throughout Belgium, BASE has signed roaming agreements with 528 operators in 215 countries for its post-paid customers and with 332 operators in 165 countries for its pre-paid customers. BASE’s multimedia coverage (Mobile Internet/GPRS) is also available abroad, in 163 countries.

Competitive products and prices

BASE is known for its cutting-edge products, like the BlackBerry Storm that the company launched in Belgium in July this year. BASE distributes its products through 54 BASE shops, 800 dealers, online, and in 61 ALLO telecom shops.

Along with its products, BASE’s pricing policies have proved a significant draw, for example concerning roaming services. Miller explains, “Companies and individuals want roaming in Belgium but our competitors do not want to offer this because they like to keep their prices high. BASE, however, has a different policy: we earn money from our network and so we welcome people to use it.”

The Belgian government aims to make the local telecom market more competitive, and BASE is prepared to play a key role. Miller says, “The government would like to see Belgium become more competitive, for example to be number one in broadband. If the government does not create a competitive environment, the country will go backward. High-tech technology is needed for competition, as well as highly skilled people, especially given the high labor costs in Belgium.”

Successful business model

In fact, BASE has been pushing forward a more liberalized telecom sector in Belgium.As Miller points out, “We founded mobilechallengers.eu and you will find all of the challenges in the telecom market there. We are driving the market’s liberalization.Our business model, with the prices that we charge and the value that we bring to our customers, gives us a sustainable advantage going across all European countries. It is ridiculous that when customers go to Paris or Amsterdam they have to pay 10 times as much for roaming services as we charge.”

Although much progress has been made in Belgium’s telecom sector, much more needs to be done, according to Miller. He says, “Belgacom charges us 8 cents a minute for fixed-line services but charges other corporate customers 5 cents a minute for the same services. This is an issue that still needs to be resolved.”

Praise for Belgium’s business environment

Miller adds that Belgium provides an excellent environment for doing business, particularly concerning the support provided to the private sector by government officials. He says, “I have found that here in Belgium ministers and their officials, as well as local officials are very accessible.If you have the right attitude and explain your problem, they will assist you in the most honest and transparent way.There is no corruption; I have found it very easy to do business here. Without this kind of support, even BASE would not have been successful.”

BASE has made a long-term commitment to the Belgian market not only through providing superior telecom services but also through its extensive community service projects. Along with all members of the KPN Group, BASE supports team sports, cultural and musical events, and original projects with a national range. One very successful initiative for BASE is its short message service (SMS) poetry competition, launched in 2005 in Ghent.

Investing in start-ups

BASE is also pursuing a policy of investing in smaller Belgian technology companies involved in linking Internet and mobile services. Miller explains, “We have invested in around seven of these companies.We believe that innovation comes from smaller, start-up companies that have a lot of drive, so our policy is to invest in them and gain stakes in them, and then use these new technologies in our own business. Rather than operate a big research and development department of our own, we invest in smaller companies to help them to develop and grow.”

Seven years after its turnaround began, BASE has developed a strong reputation in Belgium as a brand that stands for quality, value for money, transparency, innovation, and a willingness to serve as a challenger to bring change to the market.BASE lives up to its motto, ‘Freedom of speech’.

Brussels South Charleroi Airport

The ‘miracle’ of Brussels South Charleroi Airport

10 years ago a small, almost abandoned airport, situated at less than 50 km from Brussels, was chosen to operate the fi rst Low Cost route from Belgium. Today, 10 years later, Brussels South Charleroi Airport is growing by over 20% per year and has become the country’s second airport.

The reasons for this success can be found in a few key elements such as excellent accessibility, new and comfortable infrastructure, ultra quick operations and of course low fares.

The airport positions itself as a low cost airport without being ‘cheap’, meaning that passengers are welcomed in a nicely designed, shoebox shaped, brand new terminal.

The infrastructure guides passengers hassle free in 20 minutes from the entrance to the aircraft seat and for those who wish to spend some more time at the airport, all sorts of facilities are available, ranging from full Wi-Fi access, large tax free shops and several bars and restaurants. On a regular basis the airport welcomes temporary exhibitions and events that are accessible without cost for all passengers.

Since 2009, 7 airlines fl y to over 70 destinations from Brussels South Charleroi Airport, including Ryanair, Wizzair, Jetairfl y, Jet4you, Freebird Airlines, FlyOnair and Airarabia Maroc. While in 2009 4 million passengers chose to fl y to or from Charleroi, 2010 will bring 5 million passengers. Globally 50% of all the traffi c at ‘the friendly airport’ is outgoing, meaning that almost 50% of all passengers come from abroad, which obviously represents an important boost for the local economy. Arriving passengers have the choice to take one of the over 30 shuttle busses, directly to Brussels Midi Station or can choose between public transport, taxi or a door-to-door shuttle to carry on their journey. For those who wish to spend the night without going far, 5 hotels are situated within a couple of minutes from the airport terminal.

One can feel the ‘buzz’ when at the airport. All of the airlines represented at the airport continue to expand their network and additional services are launched on an almost monthly basis. Next to the airport gas station and car wash, more parking spaces are being built, the food and beverage offer will be extended, an offi cial Airport Magazine is created to provide passengers with the hottest tips on trips, …

Ten years ago very few people believed that this tiny airport, would become the region’s most powerful economical engine. Today, politicians, investors and members of the airline industry from around the world travel to Brussels South in order to understand the ‘miracle of Charleroi’.This concept is highly successful and will continue to develop in the upcoming years with more routes, more services (a dedicated railway station is being prepared) and lower fares, all realized by the airlines and the enthusiastic staff of Brussels South Charleroi, the friendly airport.