The Hungarian Communications Market Developments and ...

The Hungarian Communications Market Developments and Regulation between 2004 and 2008
ratios: e.g. on 31 December 2006, cable modem Internet service was
available in 60 percent of the households and in mid-2007, mobile
broadband was available for 48 percent of the population.
The two leading technologies of the broadband market across Europe
are ADSL and cable modem Internet. The situation in Hungary
is the same, yet with one difference. Cable infrastructure in Hungary
plays a greater role than in Europe. The comparison of the proportion
of cable modem and ADSL subscribers in the EU 25 states illustrates
well the importance of the role of cable modem Internet in the
Hungarian broadband market. As regards this index, Hungary ranks
far ahead even of countries with traditionally high penetration rates
(Belgium, Netherlands, Austria) as the cable/ADSL ratio in Hungary is
more than 80 percent.
In addition to cable modem access, the number of mobile Internet
users has also increased remarkably since 2007, so mobile technology
appeared in the market as a new competitor of broadband data
transmission technology. According to a residential survey carried
out by NHH in February 2008, six percent of the households had
mobile Internet subscriptions, with narrowband and broadband connections
to the Internet equally distributed among them. The ratio of
fixed wireless (WiFi) access also reached six percent.
The past four years have seen a drastic fall in the prices of
broadband services. While in 2003 the price of the cheapest broadband
package with the leading service providers was HUF 8 to 10
thousand, the same package was available for only HUF 5 thousand
in 2007. In addition, for the 2007-year price subscribers could use
three or four times higher bandwidths than in 2003.
3.4 Broadcasting market
Platforms in the broadcasting market
The most significant platform of the Hungarian broadcasting market
is cable television service available in more than 60 percent of the
households. In the years before 2004, it was the only broadcasting
platform offering multi-channel Hungarian content. However, in the
recent years, in addition to local cable television service providers
and early players of the digital satellite market, a new digital satellite
service provider and several IPTV service providers appeared in
the market. Owing to the fierce competition, digital satellite service
providers acquired a considerable share over the last three years.
IPTV service is not significant, as it has only been operating for two
years, so its market share so far is low. Trends show that notwithstanding
the emergence of new substitutive platforms, the cable
television sector was able to produce further growth. The source
of such growth was mostly attributable to the connection of those
households using terrestrial and/or satellite services that used to be
free in the past. While in 2003 more than 40 percent of the households
had only this type of programme reception, by 2007 their ratio
has dropped to under 30 percent.
Figure 3.17: Use of broadcasting platforms
%
60
50
40
30
20
10
0
Subscription satellite
Bírságok Terrestrial együttes + others
CATV
2003 2005 2006 2007
Source: 2003, 2005, 2006: Market survey by NHH and Szonda Ipsos (“Residential Communications
Information”); 2007: Market survey by NHH and Tárki
Cable television
Hungarian cable television infrastructure, even in international terms,
is considered advanced, with a penetration rate (number of subscribers
as compared to the total number of households) being above
OECD average.