"Hungary Telecommunications Competitive Intelligence Report Q4 2010" Published

New Fixed Networks market report from Business Monitor International: "Hungary Telecommunications Competitive Intelligence Report Q4 2010"
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* Mobile
* Telekom
* Magyar
* Broadband
* Fixed-line
* Internet
* Pannon
* Gsm
* Invitel
* Westel

* Telecom
* Technology
* Mobile

* Massachusetts - US

Nov. 20, 2010 - PRLog -- Mobile

The first cellular service in Hungary was launched in 1990 by Westel 450, a subsidiary of Magyar Telekom, over a Nordic mobile telephony (NMT) 450 network. This analogue network was closed down in Q203. Subscriber numbers for the network, latterly known as Westel 0660, had declined from a peak of around 99,000 in late 1999 to fewer than 10,000 when the service closed. A second Magyar Telekom subsidiary, Westel 900, launched commercial services over a GSM 900 network in October 1993. In May 2004, the service was renamed T-Mobile Hungary, and in December 2005, approval was granted for the merger of T-Mobile Hungary with Magyar Telekom. This change came into effect at the start of 2006.

At the same time that Westel 900 was granted its GSM 900 licence, a second GSM 900 licence was awarded to Pannon GSM, which is now wholly owned by Telenor of Norway. Pannon introduced its own commercial services in March 1994. Both Westel and Pannon received additional spectrum at 1,800MHz in March 1999, a development that coincided with the licensing of a third operator, Vodafone Hungary. All three operators were awarded 15-year 3G licences in December 2004, and all three launched their 3G networks commercially in H205.

Fixed Line

The Hungarian market for fixed-line telecoms services is dominated by Magyar Telekom, formerly known as Magyar Tavkozlesi or Matav, which was created as a joint-stock company in 1991 to take over the activities of Magyar Tavkozlesi Vallalat (the former telecoms arm of Hungary's postal, telegraph and telephone agency). Following an international tender in 1993, a consortium of Deutsche Telekom and Ameritech acquired an initial 30.30% stake in Matav; this was increased to 67.40% in 1995 ahead of Matav's public listing in November 1997. Deutsche Telekom subsequently bought out Ameritech's stake in 2000 and now holds an indirect 59.21% stake, with the remaining shares, excluding the government's 'golden' share, being publicly traded.

Exclusive local fixed-line concessions were awarded in 1993 on a regional basis. Although these local monopolies have now ended, each of the regional incumbents dominates the fixed-line market within its given area. Magyar Telekom holds 39 concessions directly. Other concessionaires include Invitel with 14 concessions, and Monortel (which is affiliated with cable TV operator UPC Hungary and operates in one concession area). Full liberalisation of the Hungarian telecoms market was introduced in December 2001, with competition permitted at the local, domestic long-distance and international levels. Several measures designed to stimulate and promote competition in the fixed-line market were introduced in 2004, including cost-based price regulation for interconnection tariffs, carrier pre-selection and number portability. Through ownership of PanTel, Invitel, Tele2 and Memorex, Invitel Holdings also offers fixed voice and data services at the national and international levels.

Although the number of fixed lines has been in decline since 2000, predominantly due to residential customers switching to mobile subscriptions, Hungary's penetration rate is in the middle of our regional rankings.


Hungary's leading ISP is T-Com, which is a subsidiary of Magyar Telekom. Magyar Telekom integrated the internet access activities of its T-Com and T-Online business units at the end of June 2007, in a move designed to improve operational efficiencies. In addition to providing fixed-line services, T-Com has responsibility for providing ADSL, dial-up, IPTV and VoIP, while T-Online's former media and content services activities are handled by a new business unit, Origo.

Broadband internet services are becoming increasingly available and popular as operators roll out ADSL services in major metropolitan areas and lower prices to attract customers. Although the incumbent is still the single largest provider of retail broadband services, the sector is increasingly subject to a growing degree of competition. Cable operator UPC Hungary and Magyar Telekom (through its T-Kabel business) offer broadband internet services via cable modem technology. UPC is currently Magyar Telekom's largest competitor, closely followed by Invitel.

Other cable TV operators offering broadband internet services include Fibernet, Digikabel (EMKTV) and TVnet. Meanwhile, a growing number of ADSL service providers offer internet services via partial or fully unbundled local loops; they include GTS-Datanet and Telekom Austria-owned eTel.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/94284_hungary_telecommunicatio...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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Tags:Mobile, Telekom, Magyar, Broadband, Fixed-line, Internet, Pannon, Gsm, Invitel, Westel
Industry:Telecom, Technology, Mobile
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