<strong>The</strong> <strong>Hungarian</strong> <strong>Communications</strong> <strong>Market</strong> <strong>Developments</strong> <strong>and</strong> Regulation between 2004 <strong>and</strong> 2008 to new service packages with more channels <strong>and</strong> improved quality. NHH has started gathering information on the price changes of a st<strong>and</strong>ard 25-channel service package at the various service providers as of 2006. <strong>The</strong> measurement of such changes is difficult on account of service providers’ practices of designing service packages as they show significant variations <strong>and</strong> are being changed frequently. Data show that at the two major service providers the prices of the 25-channel service packages surveyed in fact increased by 10 percent on average between 2006 <strong>and</strong> 2008. Terrestrial digital switchover In the broadcasting market, one of the most significant achievements of the last four years was the launch of terrestrial digital switchover. Digital switchover is a process coordinated by the European Commission envisaging the conclusion thereof by 1 January 2012 at the latest. <strong>The</strong> planned residential coverage of the digital television broadcast network (DVB-T) is close to 60 percent in 2008. In 2009, the network is expected to incorporate eight new sites, with a coverage of 88 percent to exceed that of the existing analogue countrywide commercial channels. By the end of 2010, the coverage of the network shall reach 95 percent. In 2008, mobile television (DVB-H) service will be launched in Budapest <strong>and</strong> its environs, to be extended to further seven major cities <strong>and</strong> Lake Balaton by the end of 2009. By 2012, coverage shall reach 50 percent. Since 1999, Antenna Hungária has been experimenting on its terrestrial digital television system using the MPEG-2 type compression method. However, in its tender it opted for the MPEG-4 coding method. MPEG-4 technology facilitates the operation of 8 to 12 SD (St<strong>and</strong>ard Definition) or 3 HD (High Definition) channels per multiplex, making digital terrestrial transmission a competing platform in the broadcasting market as early as of this year. Radio broadcast In Hungary, countrywide analogue radio broadcast is provided by Antenna Hungária exclusively. <strong>The</strong> company broadcasts five radio programmes of three broadcasters in the ultra short wave (VHF) b<strong>and</strong>, while two programmes of two broadcasters in the medium wave b<strong>and</strong>. <strong>The</strong> coverage of the radios in the VHF b<strong>and</strong> is between 68 <strong>and</strong> 86 percent, while in the medium wave b<strong>and</strong> the coverage of the two programmes is 75 <strong>and</strong> 100 percent, respectively. Enterprises mostly own <strong>and</strong> operate those radio transmitters broadcasting more than 170 local <strong>and</strong> 23 regional radio programmes, while, to a lesser extent, Antenna Hungária broadcasts these programmes through its own transmitters. Radio broadcasts are also affected by the digital switchover. Here, the planned date of complete switchover is end of 2014, on condition that both the coverage of radio networks <strong>and</strong> the penetration of digital radio receivers reach the requested level by that time. In 2008, the National <strong>Communications</strong> Authority of Hungary announced a tender on the operation of the terrestrial digital free-toair radio broadcast network. In the scope of the tender, Antenna Hungary (AH) obtained the operating license for a radio multiplex for twelve years. AH chose the up-to-date DAB+ compression method, through which programmes of as many as 16 to 18 channels can be broadcast. <strong>The</strong> service will definitely broadcast the public service programmes of the <strong>Hungarian</strong> Radio (MR1, MR2, MR3) <strong>and</strong> the programmes of the public programme provider Catholic Radio. <strong>The</strong> residential coverage of DAB+ digital radio service is expected to reach 31 percent already in year 2008 to go up to 44 percent next year. Complete rollout with 94 percent coverage is expected by 2013 at the latest. IPTV IPTV, the newest broadcasting platform using the (DSL) network of fixed communication service providers also appeared in Hungary. <strong>The</strong> first IPTV services in Hungary were launched by T-Online <strong>and</strong> TVnet in November 2006. (In 2007, TVnet terminated its service.) Today, the IPTV service of T-Online is available in more than three hundred towns. In May 2008, Invitel also announced to launch IPTV service in some of its service areas. In the first half of 2008, there were around 20 thous<strong>and</strong> IPTV subscribers in Hungary, the majority of them with a subscription at T-Online. According to international experiences, IPTV services have remarkable market potential, which in long run may become competitors of traditional platforms.
42 43 Results <strong>and</strong> influence of market regulations 4