2013 Hungary - Telecoms, IP Networks, Digital Media and Forecasts

Fibre accounting for only 15% of fixed-line broadband connections: more focus needed to stimulate the sector

Hungary was early to deregulate its telecoms market but interconnection and loop unbundling disputes delayed full and effective competition. Rigorous in promoting competition, the regulator has reduced interconnection and access tariffs to levels on a par with the average. As in many other markets, the fixed-line sector is shrinking due to the trend of fixed-to-mobile substation, with fixed-line operators looking to boost revenue through developing IP-based services. The economic crisis has affected telecom revenue, exacerbated by the government’s recent telecom taxes which have been criticised by the EC. The report provides an overview of Hungary’s telecoms and IT market, highlighting regulatory developments, major operators, fixed-line network infrastructure, and a variety of insightful statistics.

Competition in the broadband sector has been facilitated by regulatory measures. DSL and cable are the dominant platforms, with the demand for bandwidth pushing the drive for faster services and a focus on fibre-based networks. Catering for the large internet user base are useful online services and applications, fostering the development of an internet society. This trend has been recognised and encouraged by the government through investment and policies.

The digital media market is evolving through competition and the transition to digital programming. Standard definition and high definition digital TV is available via terrestrial TV, cable TV networks, satellite and broadband TV. Competition has intensified as a result of a growth in the number of service providers and the introduction of bundled offerings. The report profiles Hungary’s digital media market, covering market developments as well as the major players in the broadcasting, digital terrestrial TV, broadband TV, cable TV and satellite TV markets.

The dynamic mobile market is served by three mobile network operators and a growing number of MVNOs. Mobile penetration is high, providing fewer opportunities for revenue growth through new subscriber additions but enabling MNOs 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. The report also provides an informative overview of Hungary’s mobile market, covering the major players, voice and data services, regulations and a wealth of statistics offering insight and analysis in the state of the market.

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