Regulatory Agency: NMHH
Magyar Telecom 46.00%
Magyar Telekom (Deutsche Telekom)
UPC (Liberty Global Europe)
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The number of fixed-lines in Hungary has been affected by the changing consumer use of such services and by the trend for fixed-to-mobile substitution. Fixed-line operators have thus looked to fixed-line and mobile broadband services to boost revenue. The economic crisis of recent years has also affected telecom revenue, though recovery since 2013 has improved spending habits among consumers and so helped revitalise sector revenue. However, financial recovery among telcos has been rendered more difficult by the government’s telecom and utility taxes. The tax on internet data traffic was criticised by the European Commission, and the rate was reduced to 18% in early 2017. Other taxes on calls and messaging services are also in place.
In late 2015 the government struck deals with Maygar Telekom and a number of other operators under which the telcos are extending super-fast broadband access to underserved areas. For its part, the government agreed not to provide funding to competitors in specific areas where telcos undertook to provide network upgrades.
The dynamic mobile market is served by three mobile network operators and a growing number of MVNOs. The bundled services operator DIGI Telecommunications is building up a mobile network based on its 1800MHz concessions, supplemented by spectrum in the 3.4GHz which it secured at auction in June 2016. Mobile penetration is relatively high for the region, and there remains considerable growth in mobile broadband services delivered via upgraded networks. These upgrades have supported a rapid increase in the use of smartphones, and consequently of mobile data. Revenue growth is focused on mobile data as operators struggle with competition and regulated tariff reductions, as well as reduced MTRs.