2012 Hungary - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in Hungary’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include: 

  • 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;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Telco tax raises HUF61 billion but cuts into operator profits and CAPEX; operators report lower revenue; access regulations incorporate fibre and cable infrastructure sharing; National Media and Infocommunication Authority inaugurated to oversee telecoms sector; DTTV available to 95% of population yet ASO completion put off to end-2014; UPC cable dominance following purchase of FiberNet assets; Magyar Telekom launches Interactive Sat TV satellite TV platform; New Media Law causing EC concerns; UPC launches mobile service as an MVNO; RG Networks launches satellite broadband via Eutelsat; FttX subscriber base approaches 350,000; government expands e-payment systems; Maygar Telecom steps up e-health initiatives; regulator market data to March 2013; telco’s financial and operating data for Q4 2012; market developments to May 2013.

Companies covered in this report include:

UPC Hungary, Maygar Telecom, Hungarotel, GTS Datanet, FiberNet, Antenna Hungaria, Maygar Televizio, TV2, Invitel, Antenna Hungaria, T-Mobile, Telenor, Vodafone Hungary.

Researcher:- Henry Lancaster
Current publication date:- May 2012 (11th Edition)

Executive Summary

Hungary’s MVNO sector develops with UPC entering market

BuddeComm’s half-yearly 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 March 2013; telco’s financial and operating data for Q4 2012; market developments to May 2013.

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 state-owned consortium MPVI Mobile had its licence annulled in early 2013, after the courts found that the regulator had incorrectly allocated spectrum to a company which was not allowed to have bid. MNOs were obliged to return 900MHz allocations.
  • In late 2012 the government abandoned plans to extend the utility tax to include not only underground ducts and pipes but also above-ground cables, wires and pipes. The tax would have provided the state with up to HUF30 billion (€107 million) in revenue for underground infrastructure together with HUF30-40 billion for aboveground infrastructure.
  • LTE services augur well for mobile broadband developments during the coming years.
  • 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 expected to reach 350,000 by the end of 2013. 

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.

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
  • 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
    • 7.9 E-Commerce
  • 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
      • Table 1 – Country statistics – 2012 (e)
      • Table 2 – Telephone network statistics – 2013 (Mar)
      • Table 3 – Internet subscriber statistics – 2012
      • Table 4 – Mobile statistics – 2013 (Mar)
      • Table 5 – National telecommunications authority
      • Table 6 – Proportion of voice lines by technology – 2010 - 2012
      • Table 7 – VoIP and VoCATV lines in service – 2008 - 2013
      • Table 8 – Fixed-voice market share by operator – 2011 - 2013
      • Table 9 – Magyar Telekom Group financial data – 2006 - 2012
      • Table 10 – Magyar Telekom domestic financial data – 2011 - 2012
      • Table 11 – Magyar Telekom subscribers by sector – 2011 - 2012
      • Table 12 – Invitel financial data – 2009 - 2012
      • Table 13 – Invitel financial data by sector – 2010 - 2012
      • Table 14 – Invitel subscribers – 2010 - 2012
      • Table 15 – Fixed lines in service and teledensity – 2000 - 2013
      • Table 16 – Total international internet bandwidth – 2000 - 2012
      • Table 17 – Internet access revenue by platform – 2002 - 2012
      • Table 18 – Household internet and broadband penetration – 2005 - 2013
      • Table 19 – Proportion of broadband connections above 30Mb/s – 2011 - 2013
      • Table 20 – Proportion of internet accesses by platform – 2007 - 2013
      • 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 - 2013
      • Table 24 – Fixed broadband lines above 30Mb/s, by platform – 2011 - 2013
      • Table 25 – Cable broadband subscribers – 2006 - 2013
      • Table 26 – Cable broadband subscribers via DOCSIS3.0 – 2012 - 2013
      • Table 27 – UPC cable broadband subscribers – 2003 - 2012
      • Table 28 – T-Home cable broadband subscribers – 2004 - 2012
      • Table 29 – DSL broadband subscribers – 2007 - 2013
      • Table 30 – Magyar Telekom retail ADSL subscribers – 2004 – 2012
      • Table 31 – FttX broadband subscribers – 2010 - 2013
      • Table 32 – T-Home FttX subscribers – 2010 - 2012
      • Table 33 – Wireless broadband subscribers – 2006 - 2013
      • Table 34 – Mobile broadband subscribers per operator – 2009 - 2013
      • Table 35 – Mobile data traffic by operator per operator – 2009 - 2013
      • Table 36 – TV market share by main operators – 2009 - 2013
      • Table 37 – TV market share by platform – 2009 - 2013
      • Table 38 – TV subscribers by reception – 2009 - 2013
      • Table 39 – Take-up of services by bundle – 2010 - 2012
      • Table 40 – Proportion of bundled take-up by provider – 2010 - 2012
      • Table 41 – Magyar Telekom IPTV subscribers – 2007 - 2012
      • Table 42 – Cable TV homes passed and subscribers – 2002 - 2013
      • Table 43 – Cable TV sector investment – 2002 - 2013
      • Table 44 – UPC – homes passed – 2003 - 2012
      • Table 45 – UPC – Subscribers by service type – 2003 - 2012
      • Table 46 – UPC financial data (historic) – 2006 - 2009
      • Table 47 – Magyar Telekom (T-Home) cable TV subscribers – 2004 - 2012
      • Table 48 – Satellite subscribers – 2009 - 2013
      • Table 49 – T-Home satellite TV subscribers – 2008 - 2012
      • Table 50 – DTTV (MinDig TV) subscribers – 2012 - 2013
      • Table 51 – Mobile subscribers and penetration rate – 1998 - 2013
      • Table 52 – Mobile voice market share by SIM cards – 2006 - 2013
      • Table 53 – Smart phones in use – 2006 - 2013
      • Table 54 – T-Mobile subscribers – 2003 - 2012
      • Table 55 – T-Mobile mobile broadband subscribers – 2008 - 2012
      • Table 56 – T-Mobile revenue – 2004 - 2012
      • Table 57 – T-Mobile ARPU – 2004 - 2012
      • Table 58 – Telenor subscribers – 2004 - 2012
      • Table 59 – Telenor financial data – 2006 - 2013
      • Table 60 – Telenor Monthly ARPU – 2006 - 2013
      • Table 61 – Telenor Monthly ARPU – 2006 – 2013
      • Table 62 – Vodafone subscribers – 2007 - 2012
      • Table 63 – Ratio of prepaid to postpaid subscribers – 2007 - 2013
      • Table 64 – Total SMS and MMS messages sent – 2002 - 2012
      • Table 65 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
      • Table 66 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
      • Chart 1 – VoIP and VoCATV lines in service – 2008 - 2013
      • Chart 2 – Magyar Telekom Group financial data – 2006 – 2012
      • Chart 3 – Magyar Telekom subscribers by sector – 2011 – 2012
      • Chart 4 – Invitel subscribers – 2010 – 2012
      • Chart 5 – Fixed lines in service and teledensity – 2000 – 2013
      • Chart 6 – Internet access revenue by platform – 2002 – 2012
      • Chart 7 – Fixed broadband subscribers and penetration rate – 2003 – 2013
      • Chart 8 – Mobile broadband subscribers per operator – 2009 – 2013
      • Chart 9 – Mobile data traffic by operator per operator – 2009 – 2013
      • Chart 10 – TV market share by platform – 2009 – 2013
      • Chart 11 – TV subscribers by reception – 2009 – 2013
      • Chart 12 – UPC – Subscribers by service type – 2003 – 2012
      • Chart 13 – Mobile subscribers and penetration rate – 2003 – 2013
      • Chart 14 – Telenor financial data – 2006 – 2013
      • 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

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