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Research by Country/Region January 24, 2018  
Hungary: Broadband Fixed Wireless Access

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A. CURRENT GOVERNMENT POLICY GOVERNING ACCESS TO THE WORLDWIDE FIXED WIRELESS ACCESS BAND (3.4 TO 3.7 GHZ), LMDS (28 TO 31 GHZ) AND UNLICENSED BANDS

2400 to 2483.5 MHz is open for unlicensed point-multipoint traffic;

3410 to 3510 GHz and 3600 to 3800 MHz are a point-multipoint bands under concession, the use of which has been auctioned off to large telcos such as Matav, Datanet or PanTel;

5470 to 5725 MHz is reserved for radio LAN according to ERC/DEC/(99)23;

17.1 to 17.3 GHz is planned for radio LAN according to CEPT/ERC/REC 70-03 appendix 3;

28 to 31 GHz is not available. 28 GHz has been reserved for future GSM use and the frequencies above are not yet allocated;

61 to 61.5 GHz is reserved for military radar use;

B. DEMAND FOR BFW SERVICES

According to industry sources, there is a definite need for wireless services. Demand greatly outweighs supply, as wireless providers are generally small and lack the necessary initial capital to connect new customers. Wireless services are mainly being offered in rural areas, which are traditionally underserved and where no alternate means of access exists.

The Hungarian Ministry of IT and Telecom (IHM) is currently preparing a system of tax breaks for providers of broadband access, financing up to 50% of the total cost of installing a broadband network. It is estimated that this government subsidy will amount to about HUF 400 million ($1.9 million). While this option is not limited to wireless providers only, they may also apply.

C. LICENSING

There is no special provision for BFW service providers – they are treated as any other Internet Service Provider and need to complete the various applications accordingly, noting that the medium over which they plan to provide is wireless. These permissions are obtained from the Communications Authority (Hírközlési Fõfelügyelet, HiF): Visegrádi u. 100, H-1133 Budapest, Hungary.

D. FOREIGN OWNERSHIP LIMITS

There are no foreign ownership limits. Some of the telecommunications services might need additional licensing (such as VoIP systems that interconnect with the public switched phone networks).


E. INTERCONNECTION TARIFFS
There are no standard tariffs; each provider must negotiate on its own. In fact, some providers complain that the interconnection fees and the traffic prices charged by the telcos are too high, which is why they have started an initiative to construct an alternative system of backbones, effectively bypassing these telcos.

F. OTHER POLICIES AND REGULATIONS GOVERNING BFW

Sale, installation and operation of 2.4 GHz BFW equipment needs to be registered with the appropriate Local Telecommunications Authority (Hírközlési Területi Hivatal, HTH). For regulations regarding equipment operating at other frequencies, please contact the US Commercial Service in Hungary.

G. TO WHAT EXTENT ARE BFW SERVICES BEING OFFERED BY DOMESTIC OR INTERNATIONAL FIRMS?

There is still quite a bit of room for growth in the public access BFW market. Currently there are about 20 ISPs active in this market; the majority of them are small Hungarian companies providing coverage mostly in their hometown only. The big ISPs, such as Axelero (Matav / Deutsche Telekom / Germany), PanTel (KPN / Netherlands) and Datanet (GTN / Russia), content themselves with providing bandwidth to these small ISPs, leaving it up to these companies to bridge the last mile to the customer. The main problem the wireless ISPs face is lack of capital for expanding beyond their initial coverage, although some startups such as CovySoft Networks have engaged in ambitious development plans.

H. CURRENT LIST OF BFW ACCESS PROVIDERS

1. Ablaknet / Mikroweb Internet 2. Aircom Távközlési Kft.

      Frequency band: 2.4 GHz
      Equipment used: Avaya
      Coverage: City of Sopron in Western Hungary
3. BorsodWeb

      Frequency band: 2.4 GHz
      Coverage: Eastern Hungarian city of Miskolc and neighboring communities
4. CellNet Kft

      Frequency band: 2.4 GHz
      Equipment used: Avaya, Linksys, SMC
      Coverage: Town of Celldömölk in Western Hungary
5. CovySoft Networks Kft

      Frequency band: 2.4 GHz
      Equipment used: Avaya
      Coverage: 22 towns and communities in Eastern Hungary, with another 55 planned this year
      Obtained license: July 2002
      Rolled out service: August 2002
6. Delfin Informatika Kft.

      Frequency band: 2.4 GHz
      Equipment used: Cisco, Linksys, D-Link
      Coverage: Eastern Hungarian city of Hódmezõvásárhely and neighboring communities
7. DomiNet Kft.

      Frequency band: 2.4 GHz
      Coverage: Parts of Budapest and Pest county
8. DunaWeb Kft.

      Frequency band: 2.4 GHz
      Coverage: Suburbs north of Budapest (Dunakeszi, Fót, Pomáz, Szentendre, Vác), Eastern Hungarian city of Szolnok
9. Global Line Kft

      Frequency band: 2.4 GHz
      Equipment used: Avaya
      Coverage: Northeastern city of Hatvan

      HódInternet Kft.

      Frequency band: 2.4 GHz
      Equipment used: Avaya
      Coverage: Eastern Hungarian city of Hódmezõvásárhely
10. InterNetKer Kft.

      Frequency band: 2.4 GHz
      Equipment used: Cisco, Linksys, D-Link
      Coverage: Northeastern cities of Sátoraljaújhely and Szerencs
      Rolled out services: September 2002
11. Magic Kft.

      Frequency band: 2.4 GHz
      Equipment used: Cisco, Avaya, Vialan
      Coverage: 22 cities in Western Hungary
      Obtained license: February 2003 for wireless services
      Rolled out services: February 2003
12. MenthaNet Kft.

      Frequency band: 2.4 GHz
      Coverage: Most of Budapest
13. Microsystem Kecskemét Kft.

      Frequency band: 2.4 GHz
      Coverage: Southern city of Kecskemét
14. ObudaNet Kft.

      Frequency band: 2.4 GHz
      Coverage: NW part of Budapest and its suburbs
      Obtained license: December 2002
      Rolled out services: February 2003
15. Pannon Pipics Kft.

      Frequency band: 2.4 GHz
      Coverage: Rural areas of Western Hungary
16. Pc City Bt

      Frequency band: 2.4 GHz
      Coverage: Eastern Hungarian city of Kiskunmajsa
17. PipeNet Communications Bt.

      Frequency band: 2.4 GHz
      Equipment used: Cisco
      Coverage: City of Gödöllõ, NE of Budapest

18. RadioLAN Hungary Ltd.

      Frequency band: 2.4 GHz
      Coverage: 7 suburbs south of Budapest
      Obtained license: June 2003
      Rolled out services: June 2003

19. SIM Kft / APlusNet

      Frequency band: 2.4 GHz
      Equipment used: Avaya
      Coverage: 5 to 10 communities in NW Hungary
      Obtained license: 2002
      Rolled out services: 2002
20. WebBiz Bt.

      Frequency band: 2.4 GHz
      Coverage: Cities of Rétság and Diósjenõ, some parts of Nógrád county in Northern Hungary; City of Debrecen in Eastern Hungary
21. Weganet / WebWizard.hu Kft

      Frequency band: 2.4 GHz
      Coverage: Northwestern city of Tatabánya

I. CERTIFICATION PROCEDURES, AND IMPORT DUTIES
      Sale, installation and operation of 2.4 GHz BFW equipment need to be registered with the appropriate Local Telecommunications Authority (Hírközlési Területi Hivatal, HTH). Only equipment registered with the HTH may be used. The equipment must have a CE label.

      In the frequency range of 2400 to 2483.5 MHz:
1. EIRP is limited to 100 mW, both for indoor and outdoor use
2. Equipment may only be used with internal antennae or with dedicated antennae provided with the equipment by its manufacturer
3. Channel separation and loading is not limited
4. Spectral power density is max. –20 dBW/MHz for Direct Sequencing Spread Spectrum, -10 dBW/100 KHz for Frequency Hopping Spread Spectrum
5. Recommended standards: EN 300 328-1, EN 300 440-1

RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Budapest, Hungary in June 2003. For further clarification please contact:

Daniel Szollosi Nagy
Commercial Specialist
U.S. Embassy, Paris
Daniel.Szollosi-Nagy@mail.doc.gov

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