The Hungarian Communications Market Developments and ...

The Hungarian Communications Market Developments and Regulation between 2004 and 2008
Figure 3.9: Number of subscribers of voice transmission services
provided through cable network
Thousand
pcs
250
200
150
100
50
0
Source: NHH
Telephony through the Internet became possible also through the
VoIP technology. On the one hand, this meant the use of so-called
peer-to-peer solutions (e.g. Skype) using the computer; on the
other hand, it allowed broadband Internet providers to enter the
fixed voice market. The numbering space provided for such service
providers allowed subscribers to directly initiate calls, made normal
networks accessible, and, thus, telephony became possible even
without computers, through adequate VoIP equipment.
Figure 3.10: Geographical number portability (including number
portability within the same service provider)
Thousand
pcs
300
250
200
78
06/I.
88
06/II.
100
06/III.
116
06/IV.
140
07/I.
173
155
07/II.
168
07/III.
255
197
07/IV.
221
08/I.
302
235
08/II.
The introduction of number portability played a significant role
in switching service providers, an option more and more frequently
resorted to since 2004.
Mobile services
Just like in other EU Member States, the number of mobile subscribers
grows continuously in Hungary, too. By September 2008, the
penetration rate (the number of subscriptions per 100 capita) was
over 117.
Earlier, one of the important “driving forces” of such growth –
apart from the equipment subsidy – was the so-called prepaid plan,
which was introduced by service providers: services were paid for in
advance and no additional monthly fees were charged. Although the
majority of subscribers still have such subscription plans, the ratio
of subscribers with a monthly fee has dynamically been growing in
the past few years (due to service providers’ encouragement). The
ratio of prepaid subscriptions was the highest at the end of the first
quarter of 2003. At that time, more than 79 percent of subscribers
fell into this category. Since then, the share of prepaid subscriptions
has continuously been on the decrease, and by the beginning of
2008 it was a mere 63 percent.
In the Hungarian mobile market three service providers, T-Mobile,
Pannon and Vodafone, all having their own networks, have been
competing for nearly 10 years. After Vodafone entered the market,
market shares were restructured, yet from 2005, the market positions
of the players have been stabilised.
There is intense competition between service providers, which
makes regulatory intervention in the retail market unnecessary. As
for the wholesale market, regulation applies to the termination rates.
Unlike the trends in other European countries, in the Hungarian
market no mobile virtual network operator (MVNO), i.e. one with no
network of its own, operates.
Just like in the case of the fixed market, in line with legal regulations,
as of May 2004 mobile service providers are also obligated to
provide number portability for subscribers. This opportunity makes
it easier for consumers to switch service providers, which intensifies
competition. Since the introduction of number portability, the volume
of ported numbers has annually been growing by 40-50 thousand.
150
124
100
50
48
0
Dec 2004 Dec 2005 Dec 2006 Dec 2007 Aug 2008
Source: NHH