Hungary - Telecoms, Mobile, Broadband and Forecasts

Abstract

This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments.

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major players, revenues, subscribers, ARPU, MOU;
• Internet, VoIP, IPTV;
• Mobile voice and data markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and digital media;
• Telecom market forecasts for selective years to 2019.

• Approximately 40% of households enjoy fixed broadband access. DSL and cable alone represent nearly 95% of all fixed broadband connections. The incumbent announced plans in late 2008 to invest in FTTx infrastructure during 2009-2013 reaching 780,000 households, as well as upgrade existing cable networks with EuroDOCSIS 3.0 technology to 380,000 households.
• Encouraging business usage of e-government services is evident, with up to 56% of businesses using e-government services to obtain information, forms and return forms online. Recognising the potential market, the incumbent launched a project to introduce and demonstrate Internet society applications related to the health care, education, public administration, tourism and culture.
• A healthy digital TV market is evident; digital terrestrial TV broadcasts based on DVB-T and DVB-H technology commenced in December 2008 and a total of five satellite-based digital TV platforms are in service. Cable TV is widely available, with approximately 80% of households able to access CATV networks. The incumbent introduced a wholesale IPTV offering in June 2009; a number of alternative operators have taken up the wholesale offer and commenced offering competing IPTV services.
• Mobile broadband is the next growth opportunity for mobile network operators, as mobile broadband penetration is currently at 3-5%. Mobile TV is also a potential growth area following the launch of mobile broadcasting based on DVB-H in December 2008.

• This report includes what we term scenario forecasts. By describing long-range scenarios we identify a band within which we expect market growth to occur. The associated text describes what we see as the most likely growth trend within this band.
• The projections shown in the tables in this report are based on our own historical information, as well as on telecommunication sector statistics from official and non-official, national and international sources. We assume a possible deviation of 15-20% around this data.
• All statistics for GDP, revenue, etc, are shown in US$, in order to maintain consistency within and between markets. At the same time we acknowledge that this can introduce some irregularities.

Table of Contents

• 1. Key Statistics
• 2. Telecommunications Market
  • 2.1 Overview of Hungary' s telecom market
• 3. Regulatory Environment
  • 3.1 Background
    • 3.1.1 Unified Telecommunications Act 2001
    • 3.1.2 Electronic Communications Act 2003
    • 3.1.3 EU Regulatory Framework
  • 3.2 Regulatory authority
    • 3.2.1 Nemzeti Hirkozlesi Hatosag (NHH)
  • 3.3 Telecom sector liberalisation in Hungary
    • 3.3.1 Privatisation
    • 3.3.2 Interconnect
    • 3.3.3 Access
    • 3.3.4 Number portability
    • 3.3.5 Carrier selection (CS) and carrier preselection (CPS)
• 4. Fixed Network Operators in Hungary
  • 4.1 Market overview
  • 4.2 Magyar Telekom
    • 4.2.1 International expansion
  • 4.3 Hungarotel Co (HTCC) / Invitel
  • 4.4 Monor
  • 4.5 GTS-Datanet
  • 4.6 Antenna Hungaria
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
    • 5.1.1 Magyar Telekom
    • 5.1.2 Alternative operators
  • 5.2 International infrastructure
  • 5.3 Telecoms & IT
    • 5.3.1 Overview
• 6. Wholesaling
  • 6.1 Overview
• 7. Internet Market
  • 7.1 Overview
    • 7.1.1 Internet statistics
  • 7.2 Hungary' s emerging Internet society
    • 7.2.1 Legislation
    • 7.2.2 E-commerce
    • 7.2.3 E-government
    • 7.2.4 E-health
    • 7.2.5 E-education
• 8. Broadband Market
  • 8.1 Overview
    • 8.1.1 Fixed broadband statistics
  • 8.2 Cable modems
  • 8.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 8.3.1 Fibre-to-the-Home (FttH)
  • 8.4 Wireless broadband
    • 8.4.1 WiFi
    • 8.4.2 Internet via satellite
• 9. Convergence
  • 9.1 Media convergence
  • 9.2 VoIP telephony
  • 9.3 Overview of broadcasting market
  • 9.4 Free-to-Air (FTA) TV
    • 9.4.1 Magyar Televizio (MTV)
    • 9.4.2 TV2
    • 9.4.3 RTL Klub
  • 9.5 Digital TV (DTV)
    • 9.5.1 Broadband TV (IPTV)
    • 9.5.2 Cable TV (CATV)
    • 9.5.3 Satellite-based pay TV
    • 9.5.4 Digital Terrestrial TV (DTTV)
• 10. Mobile Communications
  • 10.1 Overview of Hungary' s mobile market
    • 10.1.1 Mobile statistics
  • 10.2 Regulatory issues
    • 10.2.1 GSM licences
    • 10.2.2 3G licence awards
    • 10.2.3 Mobile Termination Rates (MTR)
    • 10.2.4 EU roaming tariffs
    • 10.2.5 Mobile Number Portability (MNP)
  • 10.3 Mobile technologies
    • 10.3.1 Digital
    • 10.3.2 Third generation mobile
  • 10.4 Major mobile operators
    • 10.4.1 T-Mobile
    • 10.4.2 Pannon GSM
    • 10.4.3 Vodafone Hungary
  • 10.5 Mobile voice services
    • 10.5.1 Prepaid cards
  • 10.6 Mobile data services
    • 10.6.1 Short Message Service (SMS) / Multimedia Messaging Service (MMS)
    • 10.6.2 General Packet Radio Service (GPRS)
    • 10.6.3 Push-to-talk (PTT)
    • 10.6.4 Enhanced Data for GSM Evolution (EDGE)
    • 10.6.5 BlackBerry
    • 10.6.6 Mobile broadband
    • 10.6.7 Mobile TV
  • 10.7 Mobile content and applications
    • 10.7.1 T-Mobile
    • 10.7.2 Vodafone Hungary
    • 10.7.3 Pannon GSM
    • 10.7.4 M-commerce (micropayments)
  • 10.8 Mobile marketing
    • 10.8.1 QR code readers
    • 10.8.2 Vodafone live!
• 11. Forecasts
  • 11.1 Forecast fixed broadband subscribers - 2009 - 2012; 2018
    • 11.1.1 Scenario 1 - higher broadband subscriber growth
    • 11.1.2 Scenario 2 - lower broadband subscriber growth
  • 11.2 Forecast 3G subscribers - 2009 - 2012; 2019
• 12. Glossary of Abbreviations

TABLES:

• Table 1 - Country statistics Hungary - 2008
• Table 2 - Telephone network statistics - 2008
• Table 3 - Internet user statistics - 2008
• Table 4 - Broadband statistics - 2008
• Table 5 - Mobile statistics - 2008
• Table 6 - National telecommunications authority
• Table 7 - Magyar Telekom interconnection rates - 2006 - 2008
• Table 8 - Magyar Telekom financial data - 2007 - 2008
• Table 9 - Magyar Telekom residential, business & payphones in service - 2005 - 2008
• Table 10 - HTCC financial data - 2007 - 2008
• Table 11 - Fixed lines in service and teledensity - 1995 - 1996; 1998 - 2009
• Table 12 - Total international Internet bandwidth - 2000 - 2008
• Table 13 - Workplace network usage by network type - 2004 - 2008
• Table 14 - Total IT hardware spending breakdown by hardware type - 2007
• Table 15 - Total IT software spending breakdown by software type - 2007
• Table 16 - Total IT hardware services spending - 2007
• Table 17 - Total IT software services spending - 2007
• Table 18 - Wholesale lines by type - January 2009
• Table 19 - Access agreements with Magyar Telekom by type - 2006 - 2008
• Table 20 - Cost of local loop unbundling and shared access - 2006 - 2008
• Table 21 - Internet users, subscribers and penetration rates - 1999 - 2009
• Table 22 - Internet penetration among businesses by employee size - 2004 - 2008
• Table 23 - Percentage of businesses receiving orders online by employee size - 2004 - 2008
• Table 24 - Items purchased online by individuals - 2008
• Table 25 - Online purchases by age group - 2008
• Table 26 - Take up of e-government services by businesses - 2004 - 2008
• Table 27 - Take up of e-government services by individuals - 2004 - 2008
• Table 28 - Fixed broadband subscribers by access type - January 2009
• Table 29 - Fixed broadband subscribers and penetration rate - 2000 - 2008
• Table 30 - T-Kabel broadband subscribers - 2004 - 2008
• Table 31 - Magyar Telekom ADSL subscribers - 2001 - 2008
• Table 32 - UPC homes passed - 2003 - 2008
• Table 33 - UPC subscribers by service type - 2003 - 2008
• Table 34 - UPC financial data - 2006 - 2008
• Table 35 - T-Kabel cable subscribers - 2002 - 2008
• Table 36 - Mobile operators, subscribers and annual change - 2008
• Table 37 - Mobile subscribers and penetration rate - 1995 - 1996; 1998 - 2009
• Table 38 - 3G network coverage per operator - May 2009
• Table 39 - T-Mobile financial and operational data - 2004 - 2008
• Table 40 - T-Mobile churn, subscriber acquisition costs & ARPU - 2005 - 2008
• Table 41 - Pannon GSM financial and operational data - 2005 - 2008
• Table 42 - Vodafone Hungary average monthly ARPU & MOU - 2005 - 2007
• Table 43 - Prepaid subscribers by operator - 2002 - 2008
• Table 44 - GPRS coverage per operator - May 2009
• Table 45 - Mobile broadband subscribers and penetration rate - 2005 - 2009
• Table 46 - Mobile Internet subscribers per operator - 2009
• Table 47 - Total mobile Internet data transferred per operator - 2008 - 2009
• Table 48 - Average mobile Internet data transferred per operator - 2008 - 2009
• Table 49 - Forecast fixed broadband subscribers - higher growth scenario - 2009 - 2012; 2018
• Table 50 - Forecast fixed broadband subscribers - lower growth scenario - 2009 - 2012; 2018
• Table 51 - Forecast 3G subscribers - lower & higher growth scenarios - 2009 - 2012; 2019

EXHIBITS:

• Exhibit 1 - EU regulatory framework for communications
• Exhibit 2 - Access, the local loop and unbundling - an overview
• Exhibit 3 - Number portability defined
• Exhibit 4 - Overview of CS and CPS
• Exhibit 5 - The Economist Intelligence Unit (EIU) annual E-readiness criteria
• Exhibit 6 - Overview of media convergence
• Exhibit 7 - 2G spectrum awarded