February 2001

Hungary Summary Report (1999 - 2000)

1. State, government and official organisations, programs

1.1 Establishment of the Government Commissionership for Information Technology (www.kancellaria.gov.hu/hivatal)

Until June 1999, in the Hungarian Prime Minister’s Office a deputy under-secretary of state responsible for information and government telecommunication issues directed the development of the governmental information policy, all activities related to information and government telecommunication issues within the competence of the Office, and co-ordinated the related centralised procurement duties. The function of the deputy under-secretariat was taken over by the Government Commissionership for Information Technology from June 2000.

The government refers to the Hungarian development of the information society as a key matter considering our European integration. That is why the office of the Government Commissionership for Information Technology was established to determine and co-ordinate the tasks, and to establish the basis for a future ministry. Subsequent to the reorganisation of the Ministry of Transport, Communications and Water Management (KHVM), on 1st June Zoltán Sík was appointed the government commissioner for information technology and telecommunications operating in the organisational unit of the Prime Minister’s Office (MeH).

Major duties of the government commissionership:

• development of a coherent information society related government strategy
• planning and enforcement of government duties necessary for the integration of citizens in the information society and ensuring equal chances
• restructuring the functioning of the administration utilising the new opportunities of information technology
• development of propositions concerning the application of new technologies and methods by the government
• jurisdiction over communications
• plays a role in the supervision of the activity of the Communication Authority
• promotion of the co-operation between administrative authorities, municipalities and the civil society
• creation of the appropriate conditions for the penetration of electronic commerce and services
• to follow the processes of the information society and initiate the necessary interventions
• planning the Ministry of Information for 2002
• representation of Hungarian interests in the issue of information society on international level, with special attention to the European Union

1.2 National Information Infrastructure Development Program (NIIFP) (www.iif.hu)

During 1999 and 2000 a considerable advancement characterised the network infrastructure of NIIFP, as well as the services, the applications, and the content provided by the user community. The number of Internet hosts in Hungary reached 120,000 by the middle of 2000, with almost 60 percent of them operating within the frameworks of NIIFP. The coverage, the number of regional hubs, and the capacity of the HBONE network grew drastically. At the end of 2000, about 40 long-distance connections have been operating at 155 Mbps, or in some cases, 34 Mbps transmission speed. This way, through HBONE, the national backbone network of the Hungarian academic and research community, domestic and foreign services are accessible by all Hungarian research, higher education, and public collection organisations by a speed and standard similar to those in the developed European countries. Subsequent to the participation in the TEN-34 project, launched earlier by the EU countries, the Hungarian research and education community, within the frameworks of NIIFP, joined the similarly operating QUANTUM project of implementing and maintaining a 155 Gbps European backbone network, and later, in November 2000, joined also the new European GEANT project, which implements a gigabit network in 2001. By the autumn of 2000, NIIFP has been connected to QUANTUM’s TEN-155 network with 155 Mbps European and 65 Mbps overseas connectivity. The number of member organisations of the HUNGARNET Association, which is in close co-operation with the NIIF Program, was nearly one thousand by 2000. This organisational membership of HUNGARNET is practically equivalent to the user community of the NIIFP network infrastructure and services.

1.3 Hungarian response

A study titled ‘Hungarian Response to the Challenges of the Information Society’, which was made upon the request of István Stumpf, minister heading the Prime Minister’s Office, on behalf of Marietta Zöld-Roska, deputy under-secretary for information technology, was completed and published on the website of the Hungarian Prime Minister’s Office (www.meh.hu) in December 1999. A new program called ‘On the threshold of the new millennium’ announced by the government puts a considerable emphasis on the use of information technology in order to build the information society of the new century. This objective, at the same time, is the strategic basis for the country’s long-term future, which coincides with the vision of integration in the European Union (Bangemann report). In order for Hungary to be able to utilise the benefits of this process for the good of the whole society, government undertaking and the mobilisation of wide groups of society are required. In January 1999, István Stumpf commissioned a group of experts to elaborate government duties and put forward a proposition on government priorities and the main direction of duties. This study contains the directions and framework of obligations primarily in the field of information technology, the commitments of the government, which provides the foundation for the development then the implementation of a realisable long-term strategic schedule that is largely based on the activities of the departments and also involves the settlement of objectives, indicators, tools and sources. This study, alongside the dialogue between the government and the businesses, furnishes a basis for the enterprise community to join the attainment of the information society through its activity, and also creates an opportunity to display the direction of Hungary’s efforts to the international and, within this, especially the European community.

In February 2000, a study titled "With government backing on the information superhighway" was published on the website of the Prime Minister’s Office (www.kancellaria.gov.hu/tevekenyseg/hirlap/2000feb6/index.html) detailing the main trends and challenges of the information age and the possible solutions to these, and also outlines the steps the government has taken and will further on take in this field.

A previously released booklet was presented on a press conference on 16th March titled ‘Theses on the information society’, which was constructed in the framework of a MeH initiative by a seven-member "interdisciplinary strategic team" working beside the Prime Minister’s Office (MeH) with the aim of making the governmental management of these issues possible. The booklet, printed in 1000 copies so far, contains five main chapters (a new era of labour; knowledge as a value; government and citizens in the age of electronic government; living standard; the new culture of co-operation and regulation) and 51 theses altogether. The descriptions of all the theses are followed by an explanation and the list of the problems to be solved. The 80-page document, also downloadable from MeH’s website (www.meh.hu), puts the social aspects of the information society in the centre. Its most important priorities involve education, employment policy, the improvement of living standard and the creation of trust.

1.4 E-government

The Hungarian Government lays great emphasis on the introduction of information technology in public administration. Paying attention to the administration related development propositions of the expert moot point titled ‘Hungarian Response to the Challenges of the Information Society’; the government currently is running the following projects in order to establish the system of electronic government:

• Document management system: The Inter-ministerial Committee for Information Technology started to develop the plan of the governmental document recording information system last January. The system does not only record data, but also enables document management and makes it possible to follow labour processes as well as to precisely trace the performance of each civil servants, standardise working processes, and on the long run, to introduce quality assurance. The implementation of the system began in January. In the first round, besides the Prime Minister’s Office, the Ministry of Education, Economy, Defence and Health start using the new data recording system.
• Digital map database: The experimental workshop of the metadata providing geographic model information system called Metatér started last year. The system does not store geographic data themselves, but indicates which offices possess information on a given topic. This way it can be avoided that two offices elaborate the same field at double cost. From the central Metatér website, 5000 items of seven, mostly cartographic institutes are available, which are searchable by both geographic co-ordinates and dates.
• one-window administration: The most important element of electronic government is perhaps to simplify and digitise the conduct of affairs. One-window administration means citizens can conduct all their affairs at one place including tax paying, or applying for a passport. They will further on have the opportunity, of course, to stand in the queue in offices, but according to plans three-fourths of affairs will also be conductible on the Internet in 15 years. This of course also requires the development of the legislative background of electronic signatures and credit card payment solutions.
• Electronic signatures: Among all the objectives, the introduction of electronic signatures is the closest. The draft bill is expected to get in front of the parliament in the first part of next year, according to plans. Electronic signatures could not only identify citizens, but it would also be applied in the internal management system of the government to make it possible to know the author of each document.

1.5 The organisation of intelligent regions has commenced

The regional development strategy of the Southern Great Hungarian Plain (www.del-alfold.hu) was completed in November 1999 with the main objective for the region to become one of the economic (logistic, service providing and commercial) centres of the European Union. This international economic function to be fulfilled at the southeastern borders of the European Union is justified by the region’s economic capabilities and its geographical location. Further main elements of the strategy are to improve the competitiveness of the economy and the living standard of the population. Operative programs were approved by the Regional Development Committee of the Southern Great Hungarian Plain in the second half of 2000.

In the middle of November 2000, the five-year plan of the information strategy of Western Transdanubia was also completed. The 200-page plan laying down 160 smaller projects so far was discussed by the development council during its meeting in December, and the creation of operative programs can be started in the first part of next year. Everyone from the public administration to the economy, from the institutions to small regions, from individual settlements, also including the civil society, is affected by this comprehensive strategy, which is a tool for establishing competitiveness in the union. The intelligent development strategy of the region’s three counties and five towns of county rank will be created by next year, followed by plans of the interactive communication network and the digital self-government as well as the reformation of the economy and the region. In the implementation of the project, the program organisers also expect to get support from the Széchenyi plan and the Hungarian Prime Minister’s Office.

The Hungarian Prime Minister’s Office launched a program, which supports families’ Internet use

In the course of the CSALÁDNET (www.csaladinetpc.hu) program, it provides support for the purchasing of 1400 PCs. Indigent families can purchase their computers and the related Internet access with HUF 70,000 (and its sales tax) discount. Applications could be handed in until 20 November.

September 2000 was the deadline for the following three competitions advertised by the Deputy Under-secretariat for Research and Development of the Ministry of Education (www.om.hu):

• The objective of IKTA-3 is to support the development and testing of competitive new information and communication methods, tools and services.
  The competition comprised the following fields:
  • Information services
  • Information and knowledge management
  • Information and communication technologies
• In the course of the High-speed Internet Program, non-refund research and development support is provided for those who establish an experimental broadband information infrastructure, which later on can serve as a probe field for new applications.
• The objective of the Digital Picture Technologies and Applications is to promote the creation of new information systems and services using digital picture technology, which among others can assist the creation of new systems having significant effects in the Euro-Atlantic integration.

1.6 Professional, social and civil organisations

1.6.1 Telecottages

Telecottages are multifunctional, open profile, small community information and telecommunications service providing centres (community telecommunications servicing house). In a given region, neighbourhood it creates the minimally configured information, office technology, organisational and telecommunications intelligence, which can be economically operated in the service of various local (individual, group, community and small area) needs.

Currently, there are nearly 200 telecottages operating in Hungary. In a 3 or 4-year perspective, 800 telecottages and approximately twice the number of sub-offices cover the country network. About the Hungarian telecottage situation the www.telehaz.hu website provides continuously updated information.

1.6.2 Co-operation of information and telecommunication organisations

On 25^th February 2000, at the Hungarian Academy of Sciences (MTA), in terms of the motto "2000, the year of the Internet in Hungary", 20 Hungarian information technology and telecommunications organisations signed a collaboration agreement for speeding up the pace of the building of the information society and for the spreading of the Internet culture. The initiators of the program are the Informatics Arbitration Forum, the Hungarian Internet Society and the John von Neumann Computer Society. Further participators in the co-operation are: AmCham, Szabó Ervin Library of Budapest, Scientific Association for Infocommunications, HUNGARNET Association, HUNINET Association, Internet Galaxis - Options Ltd., Council of Hungarian Internet Providers, MABISZ IT Department, Hungarian Internet Society, Hungarian Cable Communications Association, Hungarian Telecottage Association, MTA Information Science Committee, MTA Computer Science Committee, Federation of Technical and Scientific Societies, National Agricultural Library, Telecommunications Arbitration Forum.

1.6.3 The Council of Hungarian Internet Providers for the development of the information society

The chief executives of the four leading Hungarian Internet providers signed an intention declaration on 31^st March to establish a council for the development of the Internet and the online economy, the information society and the discussion of the related issues as well as to create a more effective representation of their market and the interests of the customers. Euroweb, GTS-Datanet, MATÁVNet and PSINet group member Elender have altogether 75 percent share on the domestic Internet providing market. The aim of the Council is that the major market players could take action in issues beyond their corporate interests by harmonised objectives representing a considerable force. The common work will be primarily organised around corporate communication, telecommunication, legislation and the strategic issues of the development of the information society. The Council wishes to consult with the responsible representatives of the ministries on the harmonisation of government and market tools enabling development.

1.6.4 The Network for Youth public utility company (http://www.mgx.hu/hi)

launched free Internet courses for young people showing an interest from 24 July. In the course of the program basic level Internet courses are held in Budapest and some other cities in the country. The department for youth sponsors the program and the continuous service.

The Public Utility Company also provides free Internet access for youth organisations that already possess suitable computers. With a HUF30-million fund by the Ministry of Youth and Sport (ISM), a program called HiNet was launched this year, which is intended to connect all the Hungarian youth communities to the Internet.

The Network for Youth Public Utility Company undertook a determinant role in ISM’s computer communications program, which set the aim of creating a national information service providing system. Within this, they will invite tenders for youth organisations in 2001 to provide them an opportunity to acquire computers and other related technical equipment. Next year the Network for Youth Public Utility Company is expected to receive a 50 million HUF subsidy from ISM’s budget.

1.6.5 Information service for young Hungarians beyond the borders

The Ministries of Youth, Education and National Cultural Heritage create a Hungarian youth servicing office network beyond the borders from 2001, as announced by the head of the Ministry of Youth and Sport at the beginning of December 2000. In the meeting of the Hungarian Youth Conference comprising Hungarian youth organisations beyond the borders, Tamás Deutsch told that they intend to make information transmission between individual regions and the departments unbound by borders, so, similarly to the Hungarian example, they build an Internet network in the centres of local communities.

1.7 Education

1.7.1 SchoolNet (Sulinet) (www.sulinet.hu)

The aim of the Ministry of Culture and Education (Ministry of National Cultural Heritage from 1998) with the SchoolNet program announced in September 1996 is to support the decentralised public education with the Internet network increasing regional independence and the equality of chance. In the course of the program, all Hungarian secondary schools and boarding schools have connected to the Internet network, and by 2002, all primary schools are also expected to get connected. As a consequence, Hungary will get in the world’s forefront regarding information.

As a global objective they decided to modernise educational and cultural institutions and public collections falling within the competence of the Ministry, create an opportunity for them to use the Internet, provide methodological support, to develop the connection of Hungarians living beyond the borders to the domestic culture via the Internet, and to create unified public educational databases available to all concerned.

1.7.2 MultiCentres (www.multicenter.hu)

One multicentre opens its doors after the other in different places of the country. MultiCentres are fully computerised educational-development centres, where small children, teenagers and adults each use the complete multimedia toolkit during their activity. The first multicentre in Hungary, and the world, opened in Székesfehérvár two years ago. Currently eight such establishments are operating maintained by their owner, the Federation of Technical and Scientific Societies (MTESZ) and the local municipalities.

1.7.3 ECDL (www.ecdl.iif.hu)

In June 1997, Hungary was the thirteenth state to join the ECDL Foundation. The right to introduce and supervise the examination system and grant certificates lies with the John von Neumann Computer Science Society as the Hungarian member organisation of CEPIS. The number of examination centres grew in the second half of 1999 and in 2000. Currently there are approximately 150 accredited ECDL centres. The long-term objective is to ordain that workers in public administration should acquire the certificate, and it may also seem a reasonable idea for students to get a European Computer Driving Licence. This will significantly ease their finding a job both in Hungary and the rest of the European countries.

ECDL was accredited by the Ministry of Education, and in this way it was declared to be one of the compulsorily facultative courses in the inland teacher extension-training program from 2000. The ECDL Conference organised in Pilisborosjenő on 16-17 February 2000, in which the chairman and head manager of the international ECDL Foundation also took part besides the representatives of the ministries, was about the inland and international position of ECDL, the official government and ministerial viewpoint, the foregoing achievements and plans, and the dialogue between those concerned.

1.7.4 Internet teleteaching

The country’s first Internet teleteaching centre has started under the addresses http://okta.to and http://oktato.hu at the beginning of this year. Owing to the potential of the Internet, the course charges make it affordable for everyone to take part in any of the 20 courses in the five categories from foreign languages, European studies, marketing and rules of conduct to programming languages.

1.7.5 UNIWORLD Virtual Academy (www.uniworld.hu)

UNIWORLD builds a virtual co-operation network with the participation of Hungarian and foreign higher educational institutions. Education principally happens through the network. It brings new aspects compared to both the traditional university and teleteaching as it utilises the capabilities of the multimedia medium. Inevitably conforming to this feature, it radically steps over the world of the linear text, the printed book. UNIWORLD targets the complete verticality of education from children pedagogy to postgraduate university instruction. The project, in general, attempts to improve the efficiency of Hungarian higher education, and within this, it pays special attention to the country/rural areas. Young people living in Hungarian small settlements have much less chance to get into higher education than their city peers do. UNIWORLD can become the model of the utilisation of electronic communication for higher educational purposes for small nations, ethnic groups and linguistically separated areas.

1.8 Press, media

Information society and printed press

An increasing number of daily and weekly papers publish regular information supplements (Népszabadság www.nepszabadsag.hu, Magyar Hírlap www.magyarhirlap.hu), and the daily newspaper called Magyar Nemzet (www.magyarnemzet.com), in co-operation with the John von Neumann Computer Society, once every two weeks devotes a whole page to the information society from 30 July, 1999. The number of Internet newspapers is continuously increasing. Currently, there are 141 online periodicals in Hungary. Most of them have no printed versions, they are available only on the Internet. Two out of these, Infinit (www.ittk.hu/infinit) and Inco (www.inco.hu) are definitely specialised in the issue of the information society.

1.8.1 Internet ship

One of the parts of the media ship, which for quite a time consists of three hulls joined by a chain and starts off for the tenth time on 27th September, is called Internet ship from this year on. An own website dedicated to it also appeared with the address www.internethajo.hu besides www.mediahajo.hu.

The program of the Internet ship did not only include the Internet alone, of course, but telecommunications and information technology in general as well. Round-table discussions covered 5 topics including telecommunications, way of life, media, commerce and government, all of them reflected through the Internet, of course.

In the press conference, Mihály Enyedi Nagy, "captain" of the unique ten-year media program and György Pogány, "chief officer" of the Internet ship told that this was the first time people could cast their votes on the new media and media personalities both personally and on the web at http://www.mediahajo.hu/szavazas.php3

1.9 Library

1.9.1 Hungarian Electronic Library (MEK) (www.mek.iif.hu)

The Hungarian Electronic Library is a nonprofit project and movement with the objective to collect, systematise and bring electronic documents to a standard format and make them available for the largest possible group of people, using human resources. The documents collected in MEK are Hungarian or Hungarian/Central European related scientific, educational or cultural public domain documents in full text, which can freely be disseminated holding copyrights in respect. Besides the collection of existing publications, MEK’s other task is to encourage electronic publishing, especially the publishing of materials, the primarily aim of which is to disseminate information and knowledge and not really to make profits. Currently, MEK’s book stock contains near to 3000 electronic documents, with an average of 20,000 online visitors each month. The number of monthly hits exceeded one million. The technical background of the project is provided by the National Information Infrastructure Development Program. From September, 1999 MEK is operating with the professional and financial support of the National Széchényi Library.

1.9.2 Digital Literature Academy (www.irodalmiakademia.hu)

The Digital Literary Academy (DIA) program was launched by the Ministry of Culture in the spring of 1998 with the aim of creating a digital library of contemporary Hungarian works and making it possible to publish literary works on the Internet that are protected by copyrights. The program originally set the objective to digitise the life work of 41 living authors who were awarded the Kossuth-prize. From October 2000, the Digital Literary Academy belongs to the John von Neumann Digital Library after getting out of the scope of the Petőfi Literary Museum. The website has been in operation since the end of May, 2000. Currently it contains 213 books by 48 authors. The material to be processed is planned to be expanded by the life work of one living and 5 dead writers. The ministry originally indicated the end of December 2000 as the closing of the program, but this date was later on modified to the end of 2002.

1.10 Private sector

In the last 18 months, the Internet market was characterised by an explosive development.

More and more Internet service providers appear:

Besides www.matavnet.hu, www.datanet.hu, www.elender.hu, other providers like www.tiszanet.hu, www.vivendi.hu, www.pantel.hu, etc. also appeared.

1.10.1 Free Internet service

In December 2000, two companies launched free Internet access services, which means they provide unlimited Internet use without monthly subscription charge. (www.freestart.hu, www.kiwwi.hu)

Several firms offer free Internet storage or e-mail addresses on the Net:
www.swi.hu, www.extra.hu, www.nexus.hu, www.tar.hu, www.zona.hu, www.nexus.hu, www.hypolit.net, www.free.netlap.hu.

1.10.2 eCommerce

As a result of the development of e-commerce, Hungarian retailers and banks also discovered the potential of the Internet causing this branch a considerable advancement:

• Bookstores with nation-wide offer: www.fokuszonline.hu, www.libri.hu, www.uhu.hu
• Internet stores: www.fotexnet.hu, www.plaza.nepszabadsag.hu, www.depo.hu, www.ebolt.hu, etc.
• Some banks also provide Internet access: www.otpbank.hu, www.raiffreisen.hu, www.cib.hu, etc.