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Belgium: Flanders 5 Marlies Van Der Wee, Sofie Verbrugge and Reinhard Laroy

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Belgium: Flanders 5 Marlies Van Der Wee, Sofie Verbrugge and Reinhard Laroy Comp. by: Amoudha Stage: Proof Chapter No.: 5 Title Name: LEMSTRAANDMELODY Date:9/8/14 Time:07:57:39 Page Number: 85 CHAPTER Belgium: Flanders 5 marlies van der wee, sofie verbrugge and reinhard laroy Preamble: Flanders in Belgium With a total population of 10,951,665 (at 1 Janu- ary 2011), Belgium is a densely populated state. Belgium is a small but complex country, bounded The population density is considerably higher in by several states and for a small part by the North the region of Flanders (about 460 people/km2 in Sea. Its surface, only 30,500 km2, covers a variety 2010) than in Wallonia (about 205 people/km2 of landscapes, a coastal plain in the north-west, a in 2010) (Eurostat, 2011). plateau in the centre and the forested Ardennes The Belgian economy is mainly based on ser- uplands in the southern part of the country. vices, transport and trade (73% of the working Although small, the country is split into three population) (CIA, 2011). The share of industry different communities based on language and cul- (25% of the working population) keeps decreas- ture: the Dutch-speaking community in the north ing. The main industrial zones are currently (about 60% of the population), the French- located near the harbour cities of Antwerp, speaking (40%) in the south and a small area of Bruges and Ghent. In Wallonia, the most import- German-speaking people (about 74,000 people) in ant industrial sites are located along the two larg- the east of Belgium. Apart from this division, est rivers: the Sambre and the Meuse. Agriculture Belgium consists out of three regions: Flanders, is limited in Belgium (only 2% of the working Wallonia and the Brussels Capital Region located population). Because of its central position in geographically between the former two (Belgium, Europe, Belgium (especially its capital Brussels) 2011). is a very attractive location for central offices This complex geographical and cultural partition of international companies. This central position clearly has its political consequences. There are also requires Belgium to own a well-developed many different levels of political authority in transportation infrastructure. There is an exten- Belgium. Next to the federal government, every sive network of highways, railways and water- community and region has its own council (legisla- ways. Belgium has five international airports, tive body) and government (executive body). Bel- among them the two large airports in Zaventem gium is a monarchy with a King who is the Head and Charleroi, and a number of international har- of State, but who does not exercise any personal bours, among which is the harbour of Antwerp, authority. The ministers of the federal government, the second largest in Europe. communities and regions are fully responsible By the end of the 1980s, badly planned eco- for signing new laws in their own field. For the nomic policies resulted in a public debt of 120% telecommunications sector, the National Regulatory of the Gross Domestic Product (GDP). In the Authority, BIPT, is a federal institute, and respon- following period, the Belgian government made sible for all that concerns the telecommunications sure that every major decision fitted in the overall networks. On the other hand, the legal institutes for goal of reducing this major debt. By the end of media (media regulator) fall under the responsibility 2006, the public debt was reduced to 100% and to of the communities, since these bodies regulate con- 90% in 2008. Due to the financial crisis in recent tent and are therefore language-driven. Thirdly, there years, this public debt has risen again to 99.7% is the competition authority, which is federal but in 2011 (CIA, 2011). All three major banks in separate, a part of the Ministry of Economic Affairs. Belgium suffered heavily from this crisis and the 85 Comp. by: Amoudha Stage: Proof Chapter No.: 5 Title Name: LEMSTRAANDMELODY Date:9/8/14 Time:07:57:40 Page Number: 86 86 Case studies government was forced to intervene financially to in 1882 with the aim of introducing public teleph- prevent severe damage. ony in Europe (Vanden Berghen, 2012). In 1886, It is important to note that this paper focuses the Belgian state granted Bell the installation of only on Flanders. As can be derived from the first local telephone network in Ostend. this short introduction, the differences between The networks owned by Bell worked fine in the Flanders and Wallonia are significant, both in densely populated cities, but did not succeed in the development of the telecom sector and in the connecting people in the rural areas. Additionally, emergence of different actors. The authors there- the private ownership of the various local net- fore chose to devote the remainder of this chapter works made it difficult to interconnect them. In to the development of telecommunications in the 1893, the Belgian state bought back the conces- region of Flanders only. The focus will be on sions and thereby regained control of the various the development of fixed broadband, in particu- local networks. In 1896, the Belgian state decided lar infrastructure-based competition between the to establish a public company that received total PSTN operator and the CATV-cable operator. control of the telephone sector. The company started by taking over the remaining private net- works; the final goal was to provide telephone 5.1 Introduction: the dual road of service throughout the entire country. By 1913, telephone and analogue television the major part of Belgium had access to tele- network development phones, principally through public booths installed in most railway stations and post offices Telecommunications started a long time ago but (Wikipedia, 2011). developed faster and faster as time went by, from communicating by means of carrier pigeons in the Monopolistic situation: RTT (1930–1991) Middle Ages to telegraph systems at the beginning of the 19th century to telephone networks deployed With the outbreak of the First World War, the fi at the end of the 19th century, while cable networks Belgian authorities had to deal with great nancial for broadcast services emerged in the 1950s. trouble and could no longer support the public fi This section provides a brief overview of the devel- telephone company nancially. This led to an opment of copper and coaxial cable networks, abrupt suspension of telecommunication services since, in Flanders, they are now both used to offer in Belgium. In order to avoid losing facilities due fi broadband connectivity. to lack of nancial means in the future, a new company was founded under the name of RTT (Regie Telegraaf en Telefonie) in 1930, which 5.1.1 The development of the copper inherited a subscriber base of about 225,000 network customers. This public company still owned the monopoly over the whole telephone network, but Introduction to communication services in was set up as an autonomous institution, no longer Belgium (1879–1930) depending on the funding provided by the author- The first telephone line was installed by the ities. Competition was out of the question, as all Belgian telegraph service at the Parliament in threats of entry and substitute products were 1879. The first telephone call between two cities locked out by law, which determined that the (Brussels and Antwerp) took place in 1884 and RTT not only had the monopoly of owning and the first international conversation (with France) exploiting the copper network but also the sole in 1886. The first commercial exploitation was rights to offering services and equipment. Its inde- set up by a subsidiary of the International Bell pendence soon appeared to be primarily theoret- Telephone Company (IBTC) (Dienst Pers en ical, as the economic crisis of the 1930s caused the Informatie, 1982). This subsidiary, the N.V. Bell RTT to become involved in the industrial and Telephone Manufacturing Company, was founded employment policy of the state. To reduce the high Comp. by: Amoudha Stage: Proof Chapter No.: 5 Title Name: LEMSTRAANDMELODY Date:9/8/14 Time:07:57:41 Page Number: 87 Belgium: Flanders 87 unemployment rate, the RTT was forced to create Towards the liberalization of the Belgian market jobs through the expansion and total automation of (1991–1998) the Belgian telephone network. In the period from The first legislation concerning the use of the tele- 1930 to the beginning of the Second World War, phone was published in 1896, with the monopol- the RTT succeeded in increasing its customer base ization of the network and the foundation of the by almost one third, reaching a subscriber base of first public company. The first real Telecommuni- more than 300,000 customers. cations Law appeared in 1930, together with the During World War II, the Belgian telephone formation of the RTT. This law remained relatively network experienced serious damage and unchanged for more than sixty years, as nothing parts of its lines were destroyed. The RTT lost fundamentally changed concerning the monopol- more than 70,000 subscribers. To support the istic situation of the RTT. fast developing economy, that characterized The major cause of change resulted from the the period after the Second World War, the state publishing of the Green Paper on the development fi decided to intervene nancially to give a boost of the common market for telecommunication ser- to the telecommunication sector. The growing vices and equipment (European Commission, number of subscribers (from 350,000 in 1946 to 1987). This paper aimed at initiating discussions 522,000 in 1951 and 1,049,000 in 1965) stimu- in Europe concerning the development of a lated the RTT to invest heavily in its network. As common market for telecommunications. Also, aconsequence,theBelgiantelephonenetwork the decreasing satisfaction of Belgian customers became one of the most developed and most 1 made the authorities realize that change was progressive at the time .
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