Belgian operator BASE is exiting the digital television market, claiming it cannot make its SNOW product work pay off because of "negative" government intervention.
The country's third largest telecoms player will stop offering the service in June, with customers offered a free transfer to rival Scarlet's service. It will focus its spending on its mobile products and try and find alternate roles for the 10 staff working on SNOW.
SNOW is used by around 35,000 customers and allows consumers to customise their television package. BASE first launched the service in February 2013 but in a statement said it is no longer "economically feasible" to continue to offer it.
A spokesperson said: "The costs of the product, such as content rights and connection costs, are too high for a challenger in the fixed market, and the government has not provided a favourable environment for a new entrant into the closed fixed market. All that is required to change your mobile operator, bank or electricity supplier is a signature. But switching from one fixed operator to another is still troublesome, making customers reluctant to do so."
It said it cannot make its investments pay off and further criticised the Belgian government for its "negative impact on the investment climate in the mobile sector". It said prices for mobile use has dropped by more than 40 percent in the past few years, while costs in the fixed sector have increased.
A spokesperson added: "BASE Company remains convinced that the Belgian consumer is paying too much for digital TV, Internet and fixed telephony.
"The market for digital TV needs a strong challenger, and SNOW wanted to take on that role. BASE Company will continue to support a regulatory framework in the fixed market that is similar to that of the mobile market and therefore promotes fair competition in the interests of the customer."