Proximus Group
The Proximus Group is a provider of digital services and communication solutions operating in Belgium and international markets. In Belgium, the company offers its main products and services under the brands Proximus, Scarlet, and Mobile Vikings. The Group also operates in Luxembourg as Proximus Luxembourg SA, with the brands Tango and Telindus Luxembourg, and in the Netherlands as Telindus Netherlands. Internationally, activities are carried out by BICS, Route Mobile and Telesign. Proximus Accelerators is the ecosystem of IT partners Be-Mobile, ClearMedia, Codit, Davinsi Labs, Proximus Spearit and Telindus.
Since 31 December 2023, 53.51% of the Proximus Group is owned by the Belgian State. Proximus owns 4.56% of its own shares, and the remaining 41.93% are free tradable on the market.
History
Source:1879 to 1914: the beginning of telephony in Belgium
The Belgian telegraph services installed a telephone line in parliament in 1879, marking the start of telephony in the country. Subsequently, private entrepreneurs applied to operate telephone networks in various Belgian cities, prompting the government to establish a legislative framework to regulate telephony. By 1896, the entire telephone sector came under government ownership.By 1913, most railway stations and post offices had public telephone booths.
From World War I to 1930: transition to an autonomous public company
During World War I, telecommunications in Belgium came to an abrupt end due to the state-owned company's financial dependence. The damage and dismantling of networks during the war required massive investments. On 19 July 1930, the RTT was founded, the Belgian national telegraph and telephone company. Increasingly, people started using telephones at home.1930 to World War II: RTT's integration into the state's industrial policy
Through the RTT, the government invested huge sums in the Belgian telephone network. A growing portion of the population from various social classes now had access to telephony.At the same time, another phenomenon emerged, which soon became a heavy burden for the company. During the economic crisis of the 1930s, the government used RTT in its industrial and employment policies. By forcing complete automation of the Belgian telephone network, the government tried to reduce the high unemployment rate in the sector. This strongly restricted the autonomy of the RTT.
The 1930 law clearly stated that the company could independently design and implement an investment program. However, by imposing its employment policy, the government directly contradicted the basic principle of the law. This led to a structural problem at the RTT soon after the war.
From World War II to 1986: from high-tech company to crisis
Immediately after World War II, the RTT faced significant damage and partial dismantling of its networks. To quickly revive the sector, the government decided to provide financial assistance. During this period, the demand for telecommunication services increased rapidly. The number of subscribers grew significantly: from approximately 350,000 in 1946 to 522,000 in 1951 and then to over a million in 1965. This growth in the customer base led to a high pace of investment, making RTT a leader in technological and social development by the end of the 1960s.However, this expansion policy also had a downside. From the late 1960s, debts began to accumulate. The economic crisis gripping the world from 1973 onwards did not help. Furthermore, the company was embroiled in a corruption scandal known as the RTT scandal. The company's financial situation only worsened, and from the mid-seventies, the RTT was forced to cut costs.
Throughout the 1980s, the conviction grew that the telecommunications sector would become one of the key drivers of development in the late twentieth century. Thus, from 1981 onwards, the RTT launched a major reorganisation to solve specific structural issues of the company.
From 1987 to 2004: the Belgacom law and sector evolution under the influence of Europe
In 1987, another player entered the scene: the European Commission introduced its Green Paper on the development of the common market for telecommunications services and equipment, focusing on market liberalisation. This Green Paper served as the basis for the Belgian Law of 21 March 1991, which established a new type of government-owned company with enhanced autonomy. The Belgian telecommunications sector was reorganized, and in 1992, the RTT was replaced by Belgacom PLC, an autonomous public-sector company. The company and the state entered into a management contract that ensured the provision of certain public services and granted the company more autonomy than was stipulated in the 1930 Act.From 1994 onwards, European convergence processes were accelerated. The European Commission stated in a new Green Paper that network operation and telephony should also be open to competition. Belgacom PLC evolved into a company limited by shares under public law. On 1 July 1994, Belgacom launched the Proximus mobile network, entrusted to a subsidiary, Belgacom Mobile. Belgacom remained a 75% shareholder, with the remaining 25% owned by Air Touch.
In 1996, the Belgian government sold 50% minus 1 Belgacom share to the ADSB Telecommunications consortium. This consortium consisted of Ameritech, Tele Danmark, and Singapore Telecom, along with three Belgian financial institutions: Sofina, Dexia, and KBC.
In 1997, Belgacom International Carrier Services, a carrier and wholesale department, was established. With the complete liberalisation of the telecom market on 1 January 1998, Belgacom acquired Skynet, the first internet access provider in Belgium and one of the largest web portals in the country. Its internet activities were integrated into the Belgacom brand, which launched ADSL in the Belgian market. In 2000, BICS established offices in Asia, Oceania, the Americas, and the Middle East. In 2001, it launched its mobile offering.
In 2001, the BeST plan was introduced to restructure the company by dividing it into four business units. Belgacom also divested certain activities, including Belgacom France, Ben, its security operations, and the French operations of Infosources. The consequences of the BeST plan for the staff became apparent in 2002: many employees were offered options to quit, work part-time, or retrain.
In an increasingly open market where competition was becoming more aggressive, Belgacom decided in 2003 to radically change its image. A new logo, new colours, and a desire to be closer to the customer were intended to bring new momentum. These radical changes in the company's philosophy foreshadowed the operator's initial public offering. On 22 March 2004, Belgacom was listed on the stock market for the first time. The Belgian government remained the majority shareholder, holding 50% plus 1 of all shares, while the ADSB consortium sold all its shares.
The IPO enabled the Belgian operator to release significant resources to finance its ambitions: offering fixed internet access via broadband or fibre optic.
In 2004, the operator conducted the first tests of digital television in a few hundred households, aiming to tap into new revenue streams in a market where competition from triple-play packages like IPTV was intensifying.
From 2005 to 2009: consolidation, convergence, and the first bundled offers
In 2005, Belgacom and Swisscom Fixnet signed an agreement to merge their international carrier activities, consolidating their position in the international market. Belgacom TV was launched in the Belgian market, acquiring broadcasting rights for Belgian football for a three-season period. Belgacom introduced Belgium's first digital TV service via ADSL, expanding its services to include fixed telephony, mobile telephony, high-speed internet, and television. This move aimed to diversify revenue streams amidst declining profit margins in its other activities. Additionally, in 2005, Proximus became the first mobile telephony provider in Belgium to offer 3G services to the public.In 2006, Belgacom acquired Telindus, enhancing its range of ICT services and network integration solutions tailored for businesses and professionals. Belgacom also completed the acquisition of the remaining 25% stake in Proximus from Vodafone and acquired Euremis, a provider of mobile CRM solutions catering to companies in the fast-moving consumer goods and pharmaceutical sectors. In April 2007, Proximus and Belgacom introduced their initial bundled offerings, referred to as 'packs'. Furthermore, Belgacom focused on advancing its digital television services during this period.
In 2008, Belgacom initiated the acquisitions of Scarlet and Tele2 Luxembourg, and acquired Scarlet NV. In June 2008, the provider also acquired Tango from Tele2, an operator active in Luxembourg and Liechtenstein.
From 2010 to 2013: TV Everywhere and the first 4G network
In 2010, Belgacom Group completed the full integration of its subsidiaries, including Belgacom Mobile SA/Proximus, Telindus NV, Telindus Sourcing SA, the activities of Belgacom Skynet SA, and the Belgian activities of Telindus Group NV, into Belgacom SA, thereby forming a single legal entity. Partnerships were also signed with Jinni, In3Depth, Blinkx, and OnLive to develop the Belgacom TV entertainment platform further. Additionally, FON, the world's largest Wi-Fi community, became a partner.After several incidents, CEO Didier Bellens was fired in 2011. Ray Stewart and Stefaan De Clerck were appointed temporary CEOs until a new CEO was found.
In 2011, Belgacom introduced Belgacom TV Everywhere, enabling customers to access Belgacom TV across various devices, including TVs, PCs, tablets, and smartphones, through Wi-Fi and 3G connectivity. Additionally, Belgacom established an exclusive partnership with Deezer to enhance its content library with music streaming services. BICS initiated a roaming hub contract with MTN Group, the largest mobile operator in Africa and the Middle East. Concurrently, Telindus launched the Telindus Telecom brand, focusing on providing connectivity and data centre solutions for the business and professional sectors.
In 2012, Proximus inaugurated Belgium's first 4G network, while Tango did the same in Luxembourg. Belgacom introduced Internet Everywhere, an integrated solution catering to both home and mobile internet needs. Belgacom Group also acquired The Phone House chain of stores that year.
In 2013, Proximus unveiled new mobile pricing plans tailored to different types of phones: Smart for smartphone users and Easy for customers using classic mobile phones. Belgacom acquired significant spectrum in the 800 MHz frequency band to enhance its 4G capabilities. Through Home&Care, the company provided security solutions that enabled customers to monitor their homes via smartphones or tablets remotely. Meanwhile, Scarlet introduced TRIO, a triple-play package combining fixed telephony, broadband internet, and TV services.
In the same year, Belgacom, along with other telecommunications operators and Belgian banks, formed Belgian Mobile Wallet NV, a collaborative initiative aimed at creating a Belgian mobile payment solution named Sixdots. The objective was to promote the use of smartphones for payments instead of traditional bank cards and card readers. Despite efforts, the project faced challenges and was halted in 2015.