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Implementation of the New Framework in a New Member Country Case Study for Hungary dr. Sandor Szilagyi National Communications Authority of Hungary 05-07.09.2004
Implementation of the new framework in Hungary Progress in legislation: Act No. 1 of 1964: full state monopoly Act No. 72 of 1992: concessions and partial liberalization Act No. 40 of 2001: competition, almost full liberalization Act No. 100 of 2003: alignment with new framework ex-ante regulation market surveillance
Implementation of the new framework in Hungary Experiences with the Act No. 40 of 2001 establishing the Arbitrary Committee at NRA, 64 cases, 16 of them brought to court areas out of competition: termination market special subscribers escape ahead: ADSL services VoIP services subscription fee packages
Implementation of the new framework in Hungary Experiences with the Act No. 40 of 2001 Internet access problems: counter-interested providers direct server access only flat rate difficulties cost-oriented tariffs: too high FDC prices LRIC methodology additional costs (colocation, facility sharing, tests) infiltration of politics
Implementation of the new framework in Hungary Objectives of the new Act No. 100 of 2003 organisational changes: new Board, no Committee communications ombudsman starting a new service – registration only better data provision for and by the NRA broader rights of NRA for avoiding or resolving the disputes end of all concessions focusing on broadband Internet access
Implementation of the new framework in Hungary Market Analysis and Remedies 18 relevant markets: 7 retail and 11 wholesale ones fixed telephone: remnants of concession low penetration of new service providers share of new providers’ revenue on the territory of past concession: in the residential national call market – 0,2% in the business national call market – 4,5% mobile telephone:2 and 2,5G so far – 3 GSM companies market No. 15 does not exist, difficulties with roaming market unbundled access: remedy for remedy? broadcasting: no wholesale revenue for CATV inpact of state financed broadcasters
Implementation of the new framework in Hungary Things are changing Safari effect... but we hope it’s an instrument to make better environment for customers of electronic communications. Thank you for attention!