Trimming Proximus' FVE to EUR 18 Due to Expected Entrance of Fourth Mobile Operator

Proximus, the incumbent telecom operator in Belgium, has maintained stable broadband market share during the past decade, where it shares leadership with cable peer Telenet (45% and 35% market share, respectively). We believe the Belgian broadband market to be a rational oligopoly, where Telenet dominates in the north of the country (Flanders) and Proximus in the south (Wallonia), with the capital Brussels being more competitive. Proximus has a fixed network presence across the entire country, while Telenet and Voo (another cable operator, in negotiations to be acquired by Orange) operate in Flanders and Wallonia, respectively.