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MAPA > the Telecommunications Market in Węgry

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As in the other many markets in Hungary, a number of the fixed lines, as well as the fixed line revenue, has greatly been affected by changing consumers use of such services and by the trend for the fixed to the mobile substitution. The fixed-line operators have hence looked to the fixed line as well as the mobile broadband services to be able to boost the revenue. The economic crisis has affected the telecom revenue, though the recovery since the year 2013 has increased the disposable income among the customers, which have also helped to be able to revitalize the sector.

In late 2015, the government struck a deal with the Maygar and a number of the other operators under which telcos have been extending high-fast broadband access to the underserved areas. Such efforts have been supported by the intense infrastructurebased competition in broadband market with result that broadband penetration is a bit high for this particular region. There has been an extensive cable network that is competing against the DSL services as well as the vibrant and the rapidly growing fiber sector. In the year 2018 on May, the Liberty Global went on to agree on the sale of the cable unit, mainly the UPC Hungary to the Vodafone Group, the deal which is going to see the Vodafone Hungary improving the position in the market for the bundled services. Incumbent telco Magyar Telekom has been able to build an extensive 1 Gb/s fiber based footprint and also went on to launch the 2Gb/s Service. 

The FttP and the expansion of the services based on DOCSIS3.1 standard are going to help in driving take-up of the fixed broadband services, despite from the year 2023, it has been anticipated that the growth is going to slow down as the customers adopt data and voice services on the 5G infrastructure particularly in the rural areas. The amendments to utility Tax have gone on to encourage the operators to accelerate deployment of super-fast networks, those that provide the data of at least 30Mb/s. Such connections have accounted for over 68% of all the fixed broadband connections by the mid-2018.

Hungary’s dynamic mobile market has been served majorly by 3 network operators and the growing number of the MVNOs. Bundled services operator by the name Digi Telecommunications has been building up the mobile network based on the 1800 MHz and the 3.4 GHz concessions and has gone on to expand into the fixed line market throughout May of 2018.

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