The Hungarian Communications Market Developments and ...

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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
36 37 Figure 3.11: Changes in the number of pre- and post-paid mobile subscribers Thousand pcs 8 000 7 000 Number of the pre-paid subscriptions Number of the post-paid subscriptions Proportion of pre-paid subscriptions among total subscriptions Proportion of post-paid subscriptions among total subscriptions % 100 90 6 000 5 000 80 70 60 4 000 50 3 000 40 2 000 1 000 30 20 10 0 0 Source: NHH Figure 3.12: Changes in mobile market shares as reflected by the number of subscriptions % 100 Magyar Telekom Pannon Vodafone 90 80 70 60 50 40 30 20 10 0 02/I. 02/II. 02/III. 02/IV. 03/I. 03/II. 03/III. 03/IV. 04/I. 04/II. 04/III. 04/IV. 05/I. 05/II. 05/III. 05/IV. 06/I. 06/II. 06/III. 06/IV. 07/I. 07/II. 07/III. 07/IV. 08/I. 02/I. 02/II. 02/III. 02/IV. 03/I. 03/II. 03/III. 03/IV. 04/I. 04/II. 04/III. 04/IV. 05/I. 05/II. 05/III. 05/IV. 06/I. 06/II. 06/III. 06/IV. 07/I. 07/II. 07/III. 07/IV. 08/I. 08/II. Source: NHH
Page 1 and 2: 1 1 The Hungarian Communications Ma
Page 3 and 4: CONTENTS Contents 1. NHH’s role i
Page 5 and 6: 02 03 years. This year one of NHH
Page 7 and 8: 04 05 NHH’s role in the regulatio
Page 9 and 10: 06 07 affected parties have failed
Page 11 and 12: 08 09 Figure 1.1: NHH’s regulator
Page 13 and 14: 10 11 Key areas of regulation for t
Page 15 and 16: 12 13 2.1 Changes in institutional
Page 17 and 18: 14 15 Market analysis decisions of
Page 19 and 20: 16 17 Decision Round 1 Year Round 2
Page 21 and 22: 18 19 purposes of WMAN, which was c
Page 23 and 24: 20 21 sional knowledge but also for
Page 25 and 26: 22 23 There is the possibility of p
Page 27 and 28: 24 25 lution is well demonstrated b
Page 29 and 30: 26 27 surveillance activity. Servic
Page 31 and 32: 28 29 a member of the Council of Ad
Page 33 and 34: 30 31 Electronic communications is
Page 35 and 36: 32 33 Figure 3.5: Monthly average t
Page 37: 34 35 Fixed location services In Hu
Page 41 and 42: 38 39 Figure 3.15: Changes in the n
Page 43 and 44: 40 41 Figure 3.18: Cable television
Page 45 and 46: 42 43 Results and influence of mark
Page 47 and 48: 44 45 hindered on the retail side,
Page 49 and 50: 46 47 Figure 4.2: Voice traffic sha
Page 51 and 52: 48 49 gated price index) above the
Page 53 and 54: 50 51 Figure 4.8: Monthly spending
Page 55 and 56: 52 53 the Board imposed the obligat
Page 57 and 58: 54 55 Figure 4.10: Sales of ADSL se
Page 59 and 60: 56 57 stimulation regarding the dev
Page 61 and 62: 58 59 Figure 4.14: Broadband penetr
Page 63 and 64: 60 61 The OECD study also contains
Page 65 and 66: 62 63 postponed to the distant futu
Page 67 and 68: 64 65 mately introduced EU level re
Page 69 and 70: 66 67 According to the obligation i
Page 71 and 72: 68 69 4.5 Regulatory means applied
Page 73 and 74: 70 71 The implementation of the reg
Page 75 and 76: 72 73 Epilogue Today, electronic co
Page 77 and 78: 74 75 28 The full unbundled access

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