Hungary - Telecoms, IP Networks, Digital Media and Forecasts

Published by: Paul Budde Communication Pty Ltd

Published: Dec. 11, 2012 - 72 Pages


Table of Contents

1. Key Statistics
2. Telecommunications Market
2.1 Economic background
2.2 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
3.1.4 Revised NFR
3.2 Regulatory authority
3.2.1 Nemzeti Hírközlési Hatóság (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 (NP)
3.3.5 Carrier selection (CS) and carrier preselection (CPS)
4. Fixed Network Operators
4.1 Market overview
4.2 Magyar Telekom
4.2.1 International expansion
4.3 Invitel
4.4 Monor
4.5 GTS-Datanet
4.6 Antenna Hungária
5. Telecommunications Infrastructure
5.1 National telecom network
5.1.1 Magyar Telekom
5.1.2 Alternative operators
5.2 International infrastructure
5.3 Wholesaling
5.3.1 Overview
6. Internet Market
6.1 Hungary’s emerging internet society
6.1.1 Legislation
6.1.2 E-government
6.1.3 E-health
6.1.4 E-education
6.1.5 E-Commerce
7. Broadband Market
7.1 Overview
7.2 Fixed broadband statistics
7.3 Cable modems
7.4 Asymmetrical Digital Subscriber Line (ADSL)
7.5 Fibre-to-the-Home (FttH)
7.6 Wireless broadband
7.6.1 WiFi
7.7 Satellite broadband
7.8 Mobile broadband
8. Digital Media
8.1 Overview of digital media market
8.2 Bundled services
8.3 Regulatory developments
8.4 Free-to-Air (FTA) TV
8.4.1 Magyar Televizió (MTV)
8.4.2 TV2
8.4.3 RTL Klub
8.5 Digital TV (DTV)
8.5.1 Broadband TV (IPTV)
8.5.2 Cable TV (CATV)
8.5.3 Satellite-based pay TV developments
8.5.4 Digital Terrestrial TV (DTTV)
9. Mobile Communications
9.1 Overview of Hungary’s mobile market
9.1.1 Mobile statistics
9.2 Regulatory issues
9.2.1 GSM licences
9.2.2 3G licence awards
9.2.3 900MHz spectrum
9.2.4 26GHz spectrum
9.2.5 Mobile Termination Rates (MTRs)
9.2.6 Mobile Number Portability (MNP)
9.3 Mobile technologies
9.3.1 Digital
9.3.2 Third Generation mobile
9.4 Major mobile operators
9.4.1 T-Mobile
9.4.2 Telenor
9.4.3 Vodafone Hungary
9.4.4 MPVI Mobil
9.4.5 Mobile Virtual Network Operators (MVNOs)
9.5 Mobile voice services
9.5.1 Prepaid cards
9.6 Mobile data services
9.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
9.6.2 General Packet Radio Service (GPRS)
9.6.3 Push-to-talk (PTT)
9.6.4 Enhanced Data for GSM Evolution (EDGE)
9.6.5 High Speed Packet Access (HSPA)
9.6.6 Long-term Evolution (LTE)
9.6.7 Mobile TV
9.7 Mobile content and applications
9.7.1 T-Mobile
9.7.2 Vodafone Hungary
9.7.3 Telenor
9.7.4 M-commerce (micropayments)
9.8 Mobile marketing
9.8.1 QR code readers
9.8.2 Vodafone 360
10. Forecasts
10.1 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
10.1.1 Scenario 1 – higher broadband subscriber growth
10.1.2 Scenario 2 – lower broadband subscriber growth
11. Glossary of Abbreviations
List of Tables, Charts and Exhibits
Table 1 – Country statistics – 2012 (e)
Table 2 – Telephone network statistics – 2012 (e)
Table 3 – Internet subscriber statistics – 2012 (e)
Table 4 – Mobile statistics – 2012 (e)
Table 5 – National telecommunications authority
Table 6 – VoIP and VoCATV lines in service – 2008 - 2012
Table 7 – Fixed-voice market share by operator – 2011 - 2012
Table 8 – Magyar Telekom Group financial data – 2006 - 2012
Table 9 – Magyar Telekom domestic financial data – 2011 - 2012
Table 10 – Invitel financial data – 2009 - 2011
Table 11 – Invitel financial data by sector – 2010 - 2011
Table 12 – Invitel subscribers – 2010 - 2011
Table 13 – Fixed lines in service and teledensity – 2000 - 2013
Table 14 – Total international internet bandwidth – 2000 - 2012
Table 15 – Take up of e-government services by businesses – 2004 - 2011
Table 16 – Take up of e-government services by individuals – 2004 - 2011
Table 17 – E-education usage by individuals – 2007 - 2011
Table 18 – E-education usage by businesses – 2007 - 2011
Table 19 – Internet access revenue by platform – 2002 - 2012
Table 20 – Household internet and broadband penetration – 2005 - 2012
Table 21 – Internet users and penetration rates – 1999 - 2013
Table 22 – Fixed broadband subscribers and penetration rate – 2000 - 2013
Table 23 – Fixed broadband market share of subscribers by operator – 2011 - 2012
Table 24 – Fixed broadband lines above 30Mb/s, by platform – 2011 - 2012
Table 25 – Cable broadband subscribers – 2006 - 2013
Table 26 – UPC cable broadband subscribers – 2003 - 2012
Table 27 – T-Home cable broadband subscribers – 2004 - 2012
Table 28 – DSL broadband subscribers – 2007 - 2013
Table 29 – Magyar Telekom retail ADSL subscribers – 2004 – 2012
Table 30 – FttX broadband subscribers – 2010 - 2013
Table 31 – T-Home FttX subscribers – 2010 - 2012
Table 32 – Wireless broadband subscribers – 2006 - 2013
Table 33 – Mobile broadband subscribers per operator – 2009 - 2012
Table 34 – Mobile data traffic by operator per operator – 2009 - 2012
Table 35 – TV market share per operator – 2009 - 2012
Table 36 – TV market share by platform – 2009 - 2012
Table 37 – TV subscribers by reception – 2009 - 2012
Table 38 – Magyar Telekom IPTV subscribers – 2007 - 2012
Table 39 – Cable TV homes passed and subscribers – 2002 - 2013
Table 40 – Cable TV sector investment – 2002 - 2013
Table 41 – UPC – homes passed – 2003 - 2012
Table 42 – UPC – Subscribers by service type – 2003 - 2012
Table 43 – UPC financial data – 2006 - 2009
Table 44 – Magyar Telekom (T-Home) cable TV subscribers – 2004 - 2012
Table 45 – Satellite subscribers – 2009 - 2012
Table 46 – T-Home satellite TV subscribers – 2008 - 2012
Table 47 – Mobile subscribers and penetration rate – 1998 - 2013
Table 48 – Mobile voice market share by SIM cards – 2006 - 2012
Table 49 – T-Mobile subscribers – 2003 - 2012
Table 50 – T-Mobile revenue – 2004 - 2012
Table 51 – T-Mobile ARPU – 2004 - 2012
Table 52 – Telenor subscribers – 2004 - 2012
Table 53 – Telenor financial data – 2006 - 2012
Table 54 – Telenor Monthly ARPU – 2006 – 2012
Table 55 – Telenor Monthly ARPU – 2006 - 2012
Table 56 – Vodafone subscribers – 2007 - 2012
Table 57 – Ratio of prepaid to postpaid subscribers – 2007 - 2012
Table 58 – Total SMS and MMS messages sent – 2002 - 2012
Table 59 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 60 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
Chart 1 – VoIP and VoCATV lines in service – 2008 - 2012
Chart 2 – Magyar Telekom Group financial data – 2006 – 2012
Chart 3 – Invitel subscribers – 2010 – 2011
Chart 4 – Fixed lines in service and teledensity – 2000 – 2013
Chart 5 – Internet access revenue by platform – 2002 – 2012
Chart 6 – Fixed broadband subscribers and penetration rate – 2003 – 2013
Chart 7 – Mobile broadband subscribers per operator – 2009 – 2012
Chart 8 – Mobile data traffic by operator per operator – 2009 – 2012
Chart 9 – TV market share by platform – 2009 – 2012
Chart 10 – TV subscribers by reception – 2009 – 2012
Chart 11 – UPC – Subscribers by service type – 2003 – 2012
Chart 12 – Mobile subscribers and penetration rate – 2003 – 2013
Chart 13 – Telenor financial data – 2006 – 2012
Exhibit 1 – The EU regulatory framework for communications
Exhibit 2 – Access, the local loop and unbundling – an overview
Exhibit 3 – Number portability defined
Exhibit 4 – Carrier selection and carrier preselection overview
Exhibit 5 – The Economist Intelligence Unit (EIU) annual E-readiness criteria
Exhibit 6 – 2G spectrum awards
Exhibit 7 – Mobile network coverage – Mar 2012

Abstract

Hungary’s fibre subscriber base broaches 300,000

BuddeComm’s annual publication, Hungary - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Eastern Europe’s more progressive countries. The report includes the regulator’s market data to October 2012, telcos’ financial and operating data to Q3 2012, and market developments to November 2012.

Economic background

Poorly executed fiscal policies since the beginning of the century resulted in a high state budget deficit which successive governments have tackled through introducing austerity measures, lower state spending and increased taxes. The government’s ‘crisis tax’ levied on telecom sector revenue has been criticised by the EC as unfair to foreign-owned telcos, while the Court of Justice may be asked to intervene in early 2013 to have the tax repealed. GDP was estimated to have fallen 1% for 2012, with stagnation recorded in about half of national industries, though that for ICT has grown slightly.

Telecom market overview

Dominated by international players including Telekom Deutschland, Telenor, UPC and Vodafone, Hungary’s telecom sector remains attractive to outside investors. The overall market, particularly the mobile and broadband sectors, became more dynamic after Hungary joined the EU in 2004. Membership saw an injection of funding as well as regulatory oversight. Although liberalisation has meant that there are numerous active players, the various sectors are served by a few key operators.

Broadband market

Hungary enjoys high broadband penetration compared to other Central and Eastern European countries. DSL and cable remain the dominant access platforms though FttX has emerged as a key focus for future growth, while the 51% growth in the mobile broadband subscriber base in the year to September 2012 illustrates the potential for services and revenue from that sector in coming years. Cable networks are being rapidly upgraded with DOCSIS3.0 technology, so enabling players to offer bundled services.

Key telecom parameters – 2010; 2013
Sector | 2010 | 2013 (e)
Subscribers by sector (million):
Fixed broadband subscribers | 1.91 | 2.19
Mobile broadband | 1.0 | 2.9
Mobile phone | 12.01 | 11.80
Fixed-line telephony | 2.93 | 3.02
Penetration by sector:
Fixed broadband | 20% | 25%
Mobile | 120% | 118%
Fixed-line | 33% | 31%
(Source: BuddeComm)

Market Highlights

The early-2012 auction for spectrum in the 900MHz band generated HUH43.9 billion for the government. A part-government owned consortium introduced a new market entrant to compete against the triopoly of T-Mobile, Telenor and Vodafone.

LTE services launched by T-Mobile in 2012 augur well for mobile broadband developments during the coming years, particularly with deployment in the 900MHz band which will be effective in rural areas hampered by poor fixed-line infrastructure. The remaining MNOs plan to launch services later in 2012 and 2013.

DTTV services are available to 95% of the population. Although legislation initially set ASO for the end of 2011, with the process undertaken regionally, the

government has delayed it to the end of 2014 depending on related amendments to the New Media Act. Both Romania and Bulgaria have also put back their ASO dates.The fibre sector has shown the strongest growth in the fixed broadband market, with the number of subscribers broaching 300,000.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Hungary. It provides further information on:

Market liberalisation and regulatory issues;
The impact of the global economic crisis;
Telecoms operators – privatisation, acquisitions, new licences;
Mobile data market developments in coming years in light of spectrum auctions and new license awards;
3G developments, regulatory issues and technologies including HSPA and LTE;
Broadband migration to an FttH architecture;
Historical and current subscriber statistics and forecasts;
ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

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