Hungarian government strikes deals with telcos to extend broadband access
As in many other markets in the region, in Hungary the number of fixed-lines, as also fixed-line revenue, has been affected by the changing consumer use of such services and by the trend for fixed-to-mobile substitution. Operators have thus looked to fixed-line and mobile broadband services to boost revenue. The economic crisis has also affected the telecom sector, though recovery since 2013 has improved spend among consumers and so helped revitalise telecom services revenue. However, telcos in recent years have also had to absorb the government's telecom and utility taxes. The attempt to impose a tax on internet data traffic was abandoned in November 2014 following civil demonstrations against it, though taxes on calls and messaging services remain.
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Hungary's dynamic mobile market is served by three mobile network operators and a growing number of MVNOs. Mobile penetration is relatively high for the region, and there remains considerable growth in mobile broadband services delivered via upgraded networks. Recent investments in network infrastructure will enable operators to capitalise on strong consumer demand for mobile data services. Revenue growth is focused on mobile data as operators struggle with competition and regulated tariff reductions, as well as reduced MTRs.
Hungary has high broadband penetration for the region. Infrastructure-based competition is intense, with an extensive cable network, mainly operated by UPC Hungary, competing against DSL services and a vibrant and rapidly expanding fibre sector. The regulator has introduced a number of measures aimed at promoting market competition, which has helped drive higher speed platforms and thus investment in fibre and cable network upgrades. Both of these technologies will be increasingly important to the market during the next few years. It is expected that UPC Hungary will begin to deploy DOCSIS3.1 technology by the end of 2016, so providing data at 1Gb/s or higher. In addition, amendments to the Utility Tax have encouraged operators to accelerate the deployment of superfast networks (those which provide data of at least 30Mb/s).
In late 2015 the government struck deals with Maygar Telekom and a number of other operators under which the telcos will extend super-fast broadband access to underserved areas. For its part, the government agreed not to provide funding to competitors in specific areas where telcos undertook to provide network upgrades.
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"Hungary - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses" Published
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Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001