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. Fixed-line operators have thus looked to fixed-line and mobile broadband services to boost revenue. The economic crisis also affected telecom revenue, though recovery since 2013 has improved spend among consumers and so helped revitalise sector revenue. However, financial recovery among telcos has been rendered more difficult by the government’s telecom and utility taxes. The tax on internet data traffic was criticised by the European Commission, and the rate was reduced to 18% in early 2017. Other taxes on calls and messaging services are also in place.
In late 2015 the government struck deals with Maygar Telekom and a number of other operators under which the telcos are extending 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.
This 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.
Amendments to Utility Tax encouraging operators to accelerate deployment of superfast broadband networks; Deutsche Telekom operationally integrates GTS as part of its B2B Europe unit; government scraps proposed levy on internet traffic, continues with other telecom taxes; telcos report lower revenue; new access regulations incorporate fibre and cable infrastructure sharing; report update includes the regulator’s market data to October 2016, telcos’ financial and operating data for Q3 2016, recent market developments.
Magyar Telekom, Invitel, Antenna Hungaria, GTS-Datanet, B2B Europe.
Number of pages 23
Last updated 6 Jan 2017
Analyst: Henry Lancaster
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