Dutch operator Delta Netwerk announced a new marketing campaign for expanding its fiber network in three sections of the municipality De Ronde Venen. Area residents have the opportunity to sign pre-commitments for fiber service before the network is built out. If at least 20% of residents in each of Abcoude, Noordwijkerhout and De Zilk sign up by February 2023, then the project will move forward.

Tarifica’s Take

The Dutch fiber market is currently in an expansion phase, as the major companies race to put in fiber lines that will reach the entire country.

With this move, Delta Netwerk takes a page out of the electric vehicle industry playbook. When EV car companies, like Tesla and Rivian, introduce a new model, they typically get customers to sign up (accompanied by a hefty down payment) well in advance, while the vehicles in question are still in development, and only complete the sale much later once the cars are finished.

In both markets, not only does advanced signup demonstrate customer commitment, it also provides the company with capital to leverage development. Given the enormous costs of building network infrastructure for operators, Delta Netwerk’s strategy here is a smart one. The three areas where the pre-marketing campaign is implemented have a combined population of less than 15,000. Advanced signups will provide funding for the infrastructure, but, more importantly, will ensure that Delta’s up-front investment will be worthwhile.