At the end of 1996, main telephone lines per 100 inhabitants were 26.0. This is a significant jump from 8.98 in 1989 (1). The plan is to continue installing 200,000 lines annually through 1999. This is a decrease from 302,000 in 1996 because focus has been turned towards business communications. The target is to increase the penetration rate of direct exchange lines 35-40 by the year 2000. Additionally, at the end of 1995, 1,389 public coin booths were installed and working (2). Figure 1

Fixed services include: telephone services, data communications services (leased line services, Packet-switched data communications services, Satellite data communications services), and wide-band communication services. Mobile services include: cellular radio-telephone services; beeper service; bunched radio services, and global satellite services (3).

MATAV, the Hungarian Telecom Company that has recently become 70% privatized, will be continuing to extend ISDN services throughout the surrounding regions with an investment of HUF 70 billion for 1997 and 1998. Additionally, they have made a priority of replacing analog lines with digital. Currently, 60% of its exchanges are digital. The Hungarian Digital Backbone Network was successfully constructed during 1992-1995. This network includes an optical fiber network of about 3,000 km and a digital microwave network of about 1,800 km. The network connects all major towns, two Intelsat A satellites and one Intersputnik satellite with the international gateways and transmission routes (4). Figure 2

Mobile telephony has proved to be a fast-growing sector of telecommunications. The number of subscribers is expected to have reached 700,000 by the end of 1997 and 2.5 million by 2000. There are three service providers in Hungary: Westel Radiotelephone Co. Ltd. (450 MHZ), Westel 900 (900 MHZ), and Pannon GSM (900 MHZ). These companies have invested about USD $680 million in developing the cellular telephone market for the year ending 1996. By 1998 an additional USD $165 million in investment is expected (5).

There are four big private networks within Hungary: Hungarian State Railway (MAV), Hungarian Electricity Works (MVM, Hungarian Oil and Gas Company (MOL), and State Flood and Waterways Management Service (ABKSZ). In is expected that in the future, some banks, insurance companies and transportation companies will develop their own networks. At this point, banks and insurance companies have just started their IT systems (6).

The total number of internet hosts in Hungary has grown from 3,050 in 1993 (7) to 49,000 in 1997 (8). The total number of PCs in Hungary at the end of 1994 was 489,674 which is 89,674 more than originally forecasted a few years back (9).

Most of the telecommunications equipment is imported. The primary foreign supplier countries are: Germany, Austria, Sweden, Japan, Korea, Great Britain and the United States. There are an estimated 14 companies producing telecommunications equipment in Hungary. Siemens, Ericsson, and Alcatel hold nearly monopoly positions in a number of segments (cable production, switching technology) (10).

MAJOR DOMESTIC TELECOMMUNICATION COMPANIES (11)

 Figure 3

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