February 2001
Hungary
Master Report
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Hungary Master Report |
This report on Hungary covers the whole period of the ESIS project surveying tHungary, October 1999 - January 2001 inclusive.
1. Regulation and actors
1.1 Regulation of telecommunications and alternative networks
A draft bill of the Unified Communication Act made by the Ministry of Transport, Communications and Water Management, and the Ministry of Justice was introduced to the government at the end of 1999. This regulation aims to provide protection to the service, the users and the data by means of determining the conditions of provision and allocation, and it also lays down the responsibility of market representatives. It harmonises the European Union directives and international conventions as regards telecommunications services (97/33/EC), postal services (97/67/EC), networks, connections, network access (97/33/EC), authorisation (97/13/EC) and defining market representatives (95/62/EC, 98/10/EC, etc.).
The Prime Minister appointed a government information technology commissioner in 2000: Zoltán Sík possesses considerable experience in both the business competition sphere and government. Péter Szemerei heads the Information Society Section, Anna Dessewffy is the head of the Regulatory Section and Gábor Kleinheinz heads the Electronic Government Section.
By means of the reorganised governmental guidance, the preliminary plan of the law on electronic signatures and documents is expected to come before the cabinet in 2001. According to the law, signature verification will be a service subject to licensing. The full extent of the validity of electronic documents as evidence will be laid out in the Code of Civil Procedure, which will therefore have to be amended.
The amendment in 2001 of the law regulating companies can bring further progress if it grants the conditions for the movement of electronic data between clients and the Court of Registration.
In February 2000, the cabinet amended the bill On the Detailed Regulations of Programme Allocation, widely recognised as the Cable Act. It is intended to be kept on the books until the validation of the Unified Communication Act, in which the regulations of programme allocation can be perfectly embedded.
The proposal divides tasks regarding programme allocation between the communication authority and the National Radio and Television Board.
In Autumn 1999, the Communications Authority (HIF) launched its internal restructuring project. New tasks, activities in connection with the Unified Communication Act, developed professional activity and the further strengthening of the quality and market supervision activity of the HIF made the changes necessary. The most important part of the alterations is the creation of an independent market supervisor branch within the HIF, which deals with price control, HIF strategy and general guidance. This branch will be headed by a so far un-nominated deputy chairman coming from the business competition sphere.
1.2 Regulation and status of public utilities and public organisations regarding a potential entry in the alternative networks industry
According to the LXXII. Act of 1992 on telecommunications anybody can turn in telecommunications services with four exceptions which may be executed by the concessional companies, as well as state founded managing organisations.
The exceptions are as follows:
- public telecommunications services,
- public mobile phone services,
- public national personal caller services,
- national and local radio and television programme distribution and transmission.
Concessional service: a service that can be used via an access programme of a public-purpose telecommunicaions network in return of a fee. It includes local, national and international call trials, forwards and receptions, as well as the opportunities to make emergency calls and to make use of operator services, information bureaux, user directories and public booths. The concessional proprietors were given exclusive rights to service for a span of 8 years, i.e. until 1 January, 2000.
Applications for concessions can be announced by the Minister of Transport, Communications and Water Management. However, the local government can also initiate the announcement of an application to the prime area within its authority provided that the development of the telecommunications network or the improvement of its standards justifies it.
Each concession contract is to contain:
- the quality, quantity, turnover and technical requirements as indicated in the service schedule,
- the conditions of co-operation with other servicing enterprises, the conditions concerning concessional fees,
- the conditions of setting and changing the service fees, the well-defined geographical area of the service,
- the Minister's right to regularly revise and alter the contract for reasons of civil and national defence, consumer protection or environmental protection and
- the indication of the regulations which underline the conditions of complying with the requirements of the full service
Concession contracts can be prolonged on a single occasion.
Any citizen is entitled to initiate the setting up of a public telecommunication station. A proportion of these, as stated in the concessional contract, should be constructed in a way that people of limited motion or hard of hearing can use them.
Official tasks related to the concession are handled by the Communications Authority and its local authorities under the guidance of the Minister.
The tasks of the state are as follows:
- drawing the national telecommunications policy and creating its conditions,
- controlling the telecommunications market, harmonising concession contracts,
- creating the possibility of the utility of telecommunications services for the physically handicapped and the hearing-impaired,
- executing official tasks,
- supervision,
- appropriate action in the case of premature concession termination or of breach of contract,
- participation in international telecommunications societies,
- running the National Telecommunications and Information Technology Council and
- supporting the running of the Co-operative Forum on Telecommunications and the Alliance of Technical and Natural Science Societies.
The Supreme Prosecutor and the authorities perform the civil duties of the cabinet and the Hungarian National Prosecution.
The modification of the LXXII. Act of 1992 on telecommunications until the start of the complete liberalisation, that is the enforcement of the unified communication law, includes new instructions in order to prevent the creation of natural monopolies of cable television services and to force back the superiority of telecommunications organisations.
During the transitional regulation period until the time of the complete liberalisation, no telecommunications organisation or enterprise on which telecommunications organisations have considerable direct or indirect influence is permitted to create, lease or get the disposal in any ways of a wired, cable infrastructure suitable for programme allocation activities parallel with a communication network for public purposes except for settlements with less than 30,000 inhabitants.
Programme allocation can only be carried out, and a service-providing license can only be received if the whole reception area of the service provider does not exceed the limit defined in the act on radio and television broadcasting, that is, 1/6 of the entire population.
The structure of commercial television in Hungary has considerably been transformed during the previous few months. The broadcasting of two regional channels, Szív Tv and Msat, was terminated by Antenna Hungária Hungarian Broadcasting Company Ltd. because of the accumulated arrears of broadcasting charges. In the meantime, the merger of two similar channels, Tv2 and Tv3 owned by SBS and CME respectively, is continuously on the agenda.
From 2000 on, television broadcasts transmitted through the AM-micro system of the capital can only be seen for subscribers. The programme launched in 1987 for foreign hotel guests is actually watched by twice as many people as the number of subscribers.
Starting in 2001 in Hungary cost-based network connection fees will have to be adopted in the realm of license-obligated telecommunications services. The proposition, the details of which the Telecommunications Authority was empowered to work out, and which is the object of the contractual project between the telecommunications authority and Arthur Andersen Kft., is currently being worked out. According to reports, work is planned to be completed by September-October 2000. The realisation of the project is currently under way at three levels (expert committee, project development and supervision committee).
During the course of the project, in several phases, the cost model of the development of cost-based connection fees will be completed, but the telecommunications authority will also consider other factors when giving a proposal - probably in October - for the connection fees for 2001 to the Minister of the Prime Minister's Office (MeH), who is responsible for making the decision. Currently a cost study, or proposal, will only be made for the 2001 connection fees of fixed-line services, the project does not include mobile connection fees (according to reports, those will be worked out during the course of another project).
1.3 The actors and their strategies
According to the Unified Communication Act, the different telecommunications networks are to be constructed on a unified basis of requirements so that they can create a coherent system in Hungary. To enhance this, the fundamental technological plans are ordered by the Minister after having invited the opinion of the Telecommunications Development and Supervision Committee.
The official representation of the telecommunications companies independent from Hungarian Telecommunications Company Ltd. (MATÁV) has been executed by the LTO Society since November 1995. Its members are the following: Monor Telephone Company (MTT), JászTel, Bakonytel, Dunatel, United Telecom Investment Group including Egocom and Kisdunacom, Matel/CG Sat Group as consisting of Digitel 2002 and Déltáv, and the Hungarian Telephone and Cable Corporation (HTCC) with Hungarotel, Kelet-Nógrád COM, Rába-Com and Pápatel.
These companies have devoted thousands of millions of HUFs to improving telecommunications in regions poor in telephones. The number of their subscribers is well beyond half a million. A number of the local suppliers provide ISDN and cable television services. As far as their capital is concerned, it is way bellow that of Matáv, yet it is remarkable that such American and Western European companies should be among the local concessional telephone companies as US-MCG Holding with shares of MTT, Citizens Utilities with its 15% share in HTCC, or Tele Denmark with its 20%.
JászTel is half owned by Swiss Telecom and PTT Telecom Netherlands, the Dutch Matel B. V. owns 92 per cent of Digitel 2002 and 95 per cent of Déltáv Rt., while 40 per cent of Matel is possessed by the French CG. Sat, 25 per cent by the American General Electric Capital and 8 per cent of the izraeli Tal-Giltek. UTI is a holding which consists of European and American shareholders.
On 18 December, 1998, MKM-Tel Kft and Unisource N. V. signed a shareholding agreement on the supervision of a joint company. The company can only start its course after 1 January, 2000, since the present regulation provides Matáv and local concession holders with their monopolic position in wired phoning. The company has been created in 75.54 per cent by Hungarian Railways Rt., 20.86 per cent by KFKI Computer Science Rt. and 6.6 per cent by Mol Rt. with the aim that Hungarian Railways and possibly Mol can create a service company taking advantage of the optical cable wire network and line rights.
A company will endeavour to reach a 20 per cent share of the market, which it tries to achieve by means of managed hired line services, data access services such as package attachment, frame forwarding, LAN attachment, Internet services and virtual private network services.
According to the data of the Communication Authority, 202 cable television concessions have been issued throughout the country, and 156 licensing processes were in progress. The standard of services provided by them is not included in any provisions of law; nevertheless, star-point user networks have to be established by modernising networks until 2003. It has been calculated that the modernisation of the present network will cost at least HUF50-100 billion, while achieving the favourable 90 per cent degree of supply will require approximately HUF 300-400 billion.
Not more than a month later had the mother company found a legal wicket getting through which it can practically continue to build its network without restraint than the modification of the telecommunication act stated that the Hungarian Telecommunications Company Ltd., which is in a monopolistic position in wired telephony for the time being, is not permitted to build a cable television network in settlements with more than 30,000 inhabitants. By increasing its capital from HUF 50 million to HUF1 billion, Hungária Insurance Company Ltd. obtained a 25-per cent business share and a 75-per cent voting right in MATÁVcableTV Ltd., it meets the requirements of the new regulation, and at the same time gets the right to remain a determinant player in this rapidly developing part of the market.
In the meantime, the Hungarian concern of the United Pan-Europe Communications NV (UPC), registered in Holland, with American majority ownership and 500,000 subscribers currently, is trying to buy up the already running municipal cable television companies with an aggressive marketing policy. Even the media act setting up a 1/6-market share barrier cannot obstruct UPC.
An association called FiberNet of the investment fund of the American Prudential insurance company wishes to acquire subscribers in 300-400 thousand households in the Hungarian cable television market.
Matáv intends to gain resources for the development of its mobile and Internet services by offering its shares at an auction. The dominant telecommunications supplier can reach money on a longer run by issuing company bonds, and so foreign investors are also easily accessible. The securities will be launched on a three-year-course with a guaranteed interest of 9.25 per cent. They offer their shares of at least HUF 1 million to big holders, and the day of disposal is 7 July. The bond will also be introduced at BUX. Some reports suggest that a third of the annual HUF 385 milliard income of Matáv came from mobile phones and Internet data access.
Hungary was the first in Central-Eastern Europe where British Telecom opened an office. Its data transmission network, Concert, has a terminal point in Budapest for many years, which is used by several corporate enterprises as a leased line service.
A French firm purchased 35.5 per cent of the shares in the Hungarian Eurotel. A 380-km long optical cable is in the interest of Vivendi Telecom International S.A., which means a second place behind Matáv in the capital city.
Novacom Ltd. got a license for providing countrywide telecommunication services. The firm intends to expand its 1100-km fibreglass network. In the near future, it wishes to rise its subscribed capital from HUF 1 billion to HUF 1.5 billion. The company’s subscribers are electric suppliers belonging to the Hungarian interests of RWE, and the circle of customers in the services or banking sector has recently been expanded by the Prime Ministerial Office.
The Hungarian Telecommunications Company Ltd. concluded an agreement with Deutsche Telekom, according to which MATÁV obtained a right of option for purchasing the 49-49 per cent portion of property of Westel 900 GSM Mobile Telecommunications Company Ltd. and Westel Radiotelephone Company Ltd.
The American multinational Internet Company, PSINET, has purchased the Elender Information Technology Company Ltd., which is the second biggest domestic Internet Service Provider behind Matáv. Experts have estimated that its purchase price can amount to about HUF 7 billion.
The alternative telecommunications service providers – currently partners of the monopolistic Matáv, but its will-be competitors – GTS, Novacom, PanTel, UPC and Vivendi handed in a document to the Communication Office of the Ministry of Transport, Communications and Water Management (KHVM) including their jointly shaped opinion on the upcoming uniform communication act (EHT). According to this document, Matáv, referred to as the dominant service provider after the liberalisation, should not be allowed to start from a position in which it yet preserves its quasi-monopolistic position because the new law will not involve a regulation on the use of its networks and charges.
Regarding codification, the number of participants expanded to 9 from 5 after the joining of Antenna Hungária, British Telecom, Pannon GSM and Vodafone. The aims of the new economic group with interest enforcing weight are unaltered. The "telecommunication nines" indicated the great responsibility of the codifiers and lawmakers, since EHT will also decide on the chance of the country’s economic modernisation. Its final text will have to support the information society strategy of the Széchenyi and Neumann plans developed by the government. The nines consider EHT the most important law of the decade.
The year 2000 brought significant changes in the ownership structure of MATÁV. Deutsche Telekom gained full control of MagyarCom - the mixed holding company established in alliance with SBC - which currently has a 59.49% stake in MATÁV. The principal shareholders of MATÁV as of June 30, 2000 were The Ministry of Transport, Telecommunications, and Water Management (the holder of the Golden Share) and MagyarCom, owned by Deutsche Telekom AG and SBC (59.49%), while 40.51% of the shares are in public circulation.
Matávnet Kft., owned 100% by Matáv, is turning into a joint stock company. The share capital of the new company is HUF 1.56 billion. Although this is only HUF 20 million more than the nominal capital of its predecessor, the parent company has allocated a further HUF 809 million to fill up the negative profit reserves. The likely background for this step is the strengthening of the competition on the Internet market.
The Market Monitoring Department of the Telecommunications Authority published the latest flash report on the domestic GSM digital mobile phone providers, based on data as of July 2000. According to the report, in July 55.33% of the total active Hungarian GSM phone users were subscribers of Westel Mobil, 39.27% of Pannon GSM, and 5.4% of Vodafone. The latter increased its market share by almost one per centage point compared to June. The number of mobile phone subscribers per 100 people as of the end of July was 22.43 (at the end of June the same figure was 21.24). The flash report also states that, taking the previous month as a base, the number of active GSM subscribers grew by almost the same amount, 5.5%, for the fourth straight month.
Írisz Kft., which also played a pioneer role in the realm of web TV, was recently acquired by EuroWeb Kft. The new owner will not merge with the Internet service provider.
2. Inventory of the major "public" utilities with a potential for use in IS applications:
2.1 Types of operators using the networks.
The infrastructure of Hungarian telecommunications has fallen short of the expectations ever since the 1950s. Network building has been years behind telephone wire applications. As a result of it people often had to wait for two or three years for their telephone. Not only private subscribers, but companies and official bodies were given fewer lines than how many they were in need of.
Nevertheless, the most up-to-date inventions have entered the network of post offices. They purchased crossbar centres and 960/2700 dual frequency multichannel equipment from Ericsson in 1968. BHG and Telefongyár (Telephone Firm) bought the production licence of the named objects. At the same time, a small coax cable network was constructed together with acquiring SAT cables, still later these cables were made according to the licence in Magyar Kábel Művek (Hungarian Cable Factory). Although this step toward modernisation, the digital equipment appearing around the end of the 1970s plus the set-up of microwave 15 GHz systems did help quench the needs to some extent, yet the quantity was far from sufficient. Much more people required a telephone than how many the Hungarian Post Ltd. was able to provide.
Due to the above reasons, separate networks turned up. The networks of the police, the army and the K network of the government had to comply with exceptional requirement because of their secrecy and role. Still, in many cases these networks used the same substructures, amplifying stations and tower masts which the Hungarian Post Ltd. built. MÁV (Hungarian Railways) created a completely separate network alongside its own lines. Security apparatuses were operated on these lines, thereby realising an official connection between stations. Furthermore, they also built fairly modern long distance call networks between head offices and larger railway stations. The long distance call network worked so well that whenever the public network happened to be out of order, it was possible to maintain a relationship via this medium.
The network of the oil industry, as built alongside the pipelines, was also of considerable importance. This network similarly covered the entire country, and even a construction and managing centre was created with its seat in Siófok. This operative network was capable of handling the telephone communications between factory centres, too.
Similarly to these, the network of Magyar Villamos Művek Tröszt (Humgarian Electricity Company Trust) was built up, which included the various centres of the regional electricity suppliers together with the power plants. A help line service was built by motorways with help poles at every 2 kms. The network of the National Water Management Office was of a minor importance, the main function of which was the co-ordination of work in cases of floods. Apart from this, it was only used to keep dam-keepers and Water Management in close contact.
Cable television networks started to be built in the 1960s, but then these were merely used for monodirectional wooden structioral information access: head stations were connected with the population of a district or a housing estate.
After the Hungarian Post Ltd. broke up, Matáv began to develop at a quick pace. It took only three years to build a great capacity photo-conducting network which covers the whole country, and store programme based digital centres with time division were now under construction. Deutsche Telekom and Ameritech purchased 30 per cent of Matáv in 1994, and got hold of two thirds two years later. Subsequently, a supporter market appeared, a number of novel services were introduced, and, as a consequence, now the proportion of telephones is much higher in relation to the national income, (34 per 100 person).
Mobile phone suppliers have been funded. The degree of mobile phone supply is now over 12 per cent in Hungary. The network of MÁV is also based on photo-conducting, and the wide range connection is at a disposal by the main railway directions. Simultaneously, security apparatuses have also updated, and the other elements of the network have been substituted with modern elements. MOL executed these developments in rather a conservative manner, and they used copper cables in their alterations. PanTel telecommmunications supplier company was founded in 1998 as a part of the Dutch KPN. MÁV and MOL are also partial shareholders in it, they brought parts of their respective networks as apport. Hence the second whole country network which provides its superusers with Internet based talk (VoIP) and data supply.
MVM did not take part in this action. Moreover, it did not join the enterprise which aims to supply Budapest and parts of the agglomeration on the basis of the network of Budapest Electric Company. They have created a telecommunications enterprise with foreign capital investments.
The demand for cable television network has increased considerably. Providing every flat with informational network services, Internet and two-way connections can positively be achieved on the KTV net. Research has been made to prove this point in and around Nyíregyháza and Sopron. The network in Nyíregyháza gained absolute complacency in the users. Rapid construction of photo-conducting cable television network has been started in Budapest, too.
In the meantime, the Hungarian concern of the United Pan-Europe Communications NV (UPC), registered in Holland, with American majority ownership and 500,000 subscribers currently, is trying to buy up the already running municipal cable television companies with an aggressive marketing policy. Even the media act setting up a 1/6-market share barrier cannot obstruct UPC.
Among other reasons, Matáv has been facilitated to build its cable television network by visiting local mayors. Local representatives of the administration applied to Matáv in 1996 for a joint investigation of the possibility of how to create a modern cable television network in their districts. As there are 160,000 flats in the six districts in question, this is rather a large scale construction. In three out of the six districts (X., XVI., XVII., XVIII., XX. and XXIII.) the Első Pesti Telefontársaság (First Pest Telephone Company), which also provides the telecommunications services in the area on behalf of Matáv, assists the work. An up-to-date star point network is being built with an exceptionally wide span, which means that on the one hand the users will be able to widen the selection of channels, and on the other that good technical quality will give them exquisite picture quality.
Some 50 per cent of the homes are connected to a cable television network. Maintenance of the existing network may cost up to HUF 50 to 100 milliard, and an investment of about HUF 300 or 400 milliard would be needed for the required 90 per cent coverage. The scene seems to be open for any possible market representative, and further market members (Argus Risk Fund, Hungarian - American Enterprise Fund) are expected to appear.
Antenna Hungária intends to play a part on the telecommunications market in the future. It is shown by the fact that it owns 20 per cent of the shares of the third mobile supplier, PrimaTel. For the time being this company is run buy the state, but there are intentions to secure a minority of the shares for an enterprise of solid capital which could assist Antenna Hungária in broadening its telecommunications variety.
According to data available to HIF, considering the number of active subscribers, the market share in April of Westel Mobile Telecommunications Company Ltd., Pannon GSM Telecommunications Company Ltd., and V.R.A.M operating under the brand Vodafone were 55.96 per cent, 40.93 per cent and 3.11 per cent respectively.
Subscribers of Pannon GSM Telecommunications Company Ltd. has reached HUF 1.1 million, while it has achieved an income of HUF 68.2 milliard and a profit of HUF 7.8 milliard prior to taxation by the end of October, 2000. Pannon GSM had an income of HUF 76.5 milliard and a profit of HUF 13 milliard prior to taxation last year. At the end of last year the number of its subscribers was around 669,000.
UPC Hungary Ltd. takes into account 100,000 new subscribers this year – currently it is present in 30 Hungarian settlements having 503,000 subscribers. UPC Hungary Ltd. has been in the 100 per cent ownership of the Dutch parent firm since the end of March 2000, which was the time when they purchased the 20.75 per cent share of the First Hungary Fund for 63.9 million Euros.
Matáv provides an average of 10 per cent discount for budgetary institutions as high-scale customers for making use of its telecommunications services. The Treasury-KHVM-Matáv agreement on this was signed and published according to the government’s decision on 13th May. According to particular covenants, other budgetary institutions (e.g.: institutions of the Parliament) can also come in for a share in the discount. Matáv provides a differentiated service for the individual institutions for the required telephone, ISDN, Flex-Com, Frame-Relay, VSAT and Internet services.
Matáv, besides traditional network improvement, will replace in the country its 160,000 RLL radiotelephones equipped between 1995 and 1997 with up-to-date ones, especially in areas not having built network. The company ensured the rapid satisfaction of telephone needs and the complete accomplishment of the concession contract contents with these RLL telephones. KHVM and Matáv agreed that the telephone company would give back until 4 November 2003 the band available in the 900 MHz frequency range, where RLL operates, and ensure the replacement of the system with a new, update technology. The replacement involving wired and wireless high technology will involve almost 96,000 RLL stations in the 14 primary districts in the area of the Eastern Hungarian technical directorate. 22,000 will take place out of these this year. The new technology will enable digital access through optical and copper lines and microwaves. Charging periods and charge zones are the same as of the current wired services.
Ericsson and Matáv signed an intention declaration regarding the mutual investigation and potential testing of the Engine system. The Engine solution enables Matáv to provide telecommunication-level services including efficient data transmission services and multimedia services accessible via an integrated multiple services network. The Engine network is capable of transmitting an increasing amount of voice and data traffic and meets the advanced network co-operation requirements of the liberal and competitive Hungarian telecommunications environment.
In the second half of January, Matávcom and Nortel Networks signed a partnership contract, according to which Matávcom has become the official distributor of the Nortel Networks Enterprise Solutions Data (private network data communications solutions) product line. Matávcom, registered as Matáv’s 100 per cent subsidiary, runs a national network. Beyond strategic partnership relations, Matávcom aims to acquire the right to use the title ‘Enterprise Solution Partner’ of the Canadian giant firm. The management of Matávcom does nor expect the same scale of development in the market segment of sub-exchanges and traditional telephone distribution than in information technology, so the firm focuses on the IT market.
In summer, 2000, MATÁV launched its caller identification service in its geographic are of service – 36 of the country’s 56 prime zones. Users who subscribe to the service – if they purchase a phone or a supplement suitable for displaying phone numbers – can see the number of the person calling, if the caller did not have his number classified. Initially the service will be available to 70% of MATÁV subscribers, the clients of the three GSM-based mobile phone companies, and the nation-wide ISDN subscribers, but the range will be gradually expanded to include 0660-type mobile phones and the rest of the fixed-line subscribers. The display of our phone numbers on other people’s phones is free.
CA IB Securities Rt., in collaboration with the Austrian CAIBON.COM Internet Services AG, has started the on-line trade of stocks listed on the Budapest Stock Exchange. The fees of electronic broker trading are lower than in conventional trade, the commission is 0.8% instead of CA IB’s 1%. CAIBON’s home page also offers market news and analyses. The page is available in several languages; the security of on-line trade will be the highest currently possible, with three levels of verification.
The trade of investment funds is planned to start by the end of the year, and the international stocks circulated by CA IB Securities Rt. and the Bank Austria Creditanstalt Group as of 2001 on the system. The on-line trade of stocks is currently hindered by the fact that the law on on-line customer recognition has not been accepted yet. Thus, with the acceptance of the encryption procedures, substantial progress is expected in 2001.
Last year three banks started on-line services, with 10,000 users, this year six banks had 41,100 clients. Estimates for next year say that 15 banks will provide electronic banking services to 112,000 customers.
Antenna Hungária (AH) will rename its AM-mikro service, currently receivable only in Budapest and its vicinity, to AntennaMikro, renewing its content and quality of reception; the service will be available in three months' time, and will be viewable only with a decoder. The company plans to reach at least all of its current official subscribers, about 132,000 people, but hopes to also reach the rest of the estimated 270,000 people now watching AM-micro.
Besides telephone and cable television services, Matáv is also present as an Internet supplier. Matáv group entered the market of Internet services in 1996. The new supplier forced a considerable reduction in prices on the market. Thereby it made Internet services available not only for well-to-do enterprises but also for homes.
At present MatávNET owns a 14 Mbite international connection which it expands according to the demands. It is directly connected to American as well as European termini via telecommunications and international Internet supplier companies, such as TeleGlobe, Cable&Wireless, MCI and Deutsche Telecom.
Some further Internet suppliers include DataNet, Elender, and EuroWeb.
2.1.1 Conclusion
At present, the major part of the telecommunications services is provided by Matáv. Its transmitting and connecting equipment is up-to-date and covers the whole country. They appear with increased value services even on the field of smaller concessional suppliers. It is expected that besides Matáv the following members will play a crucial part in the "telecommunications contest":
Subscriber demand for the two public-purpose concessional personal callers remained way below expectations. These two services with a realised state coverage of some 65 per cent and a subscriber number of about 20,000 are not significant members of the telecommunications market.
The Internet service providers, in co-operation with PC manufacturers (Elender with HP, GTS-DataNet with Compaq, and MATÁVnet with Albacomp), make efforts in order to make their potential customers’ connection to the Internet easier by offering various access packages. They offer fully equipped computers with programmes or set top boxes supplementing television with a two-year subscription period for a fragment of the commercial price. Users with long-term contracts will still remain in their circle of customers when cable television networks provide off-line Internet connectivity through television channels. The main reason for the slow spreading of the domestic Internet use is the high charges that come together with telephone connections through modems. But parallel with the expansion of alternative devices, the market will immediately be restructured.
2.2 Types of services offered by the operators on the networks.
The following services have a determining role in Hungary:
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