The Hungarian Communications Market Developments and ...

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Figure 4.2: Voice traffic share of carrier selection
Million
minutes %
3500
3000
Carrier selection call traffic
Total voice traffic
Carrier selection/total traffic (%)
21
18
2500
15
2000
12
1500
9
1000
6
500
3
0
0
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.
Source: NHH
Traffic via carrier selection increased dynamically to exceed by
fourteen percent of all fixed traffic by the end of 2005. Later on,
however, such growth has stopped and the market position of those
players competing via carrier selection stabilised at this level.
The effects of competition were remarkably reflected by retail
prices. The average per minute tariffs, in all call directions, significantly
decreased. The most impressive decrease was seen in local
and domestic calls; by 2007 their price level was sixty percent lower
than in 2004. The tariffs of international calls fell near thirty percent,
while the tariffs of fixed-to-mobile calls fell ten percent during those
three years.
By 2004, alternative service providers obtained a significant share
primarily in the business market of international calls. In 2005, however,
competition soared in the residential market, where the share
of incumbent service providers fell by more than twenty percent to
around seventy percent in one year. Then, the loss of market share
of service providers with SMP in the residential traffic market slowed
down slightly. In the business markets, alternative service providers
were able to steadily increase their market share.
Figure 4.3: Per minute revenues of fixed traffic services
HUF
60
50
40
30
20
10
0
Local
Domestic
International
To mobile
2004 2005 2006 2007
Source: NHH