Review from the Eastern outskirts A CEE operators perspective on SERENATE by Bla Gellai Matv Hungari

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Review from the Eastern outskirts A CEE
operators perspective on SERENATEby Béla
GellaiMatáv - Hungarian Telecommunications
Company Limited
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Summary

• Telecommunications in CEE after velvet/bloody
  revolution(s)
• EU sponsored initiatives PHARE and other
  regional development projects
• Deregulation at the time of IP-IT bubble-bursting
• Flexible and reliable incumbents meet the demands
  

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Post-revolution telecoms...

• Transition from National PTT in planned economy
  into national service provider stock-company(ies)
  in market economy
• Technological metamorphosis shift from copper
  to fibre, analogue - digital, rotary - crossbar -
  
• digital, PDH - SDH - ATM -WDM
• Change in management style strong
  technology-based hierarchy - functional
  management model ruled by economists -
  overwhelming marketing orientation, divisional
  management and EBITDA-kingdom
• Support from the Western side
  technical-scientific consulting, management
  consulting, restructuring funds, IMF WB and other
  development loans/programs
• Strategic partners through privatisation
  

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Regional telecom development in EU ante-room

• Sponsoring the break-through in telecom
  technology
• Participation in establishing market
  economies and national telecom operators
• Co-ordination of international network
  development in the region (TEL, TET, TAE and
  other projects)----------------------------------
  ---
• Chain of well-equipped, strong incumbents-monopoli
  sts with Western-style management
• integrated in a meshed international network

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Deregulation

• Legislation environment tailor-made, supportive
  of emerging carriers and forward-looking
• Market liberalisation time-settings almost
  according to EU milestones
• CEE alternative operators and public utility
  companies entering into partnership
• Global network operators appearing in the region
  
• but a bit late
• Market growth rate smaller than expected
• Operational margins shrinking
• Price war in data market destabilising players
• Bad news from the stock-exchange

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Incumbents meet the demands(Matávs example for
contribution)

• First 34 Mbps link to Vienna in TEN-34
• Expanding it to TEN-155
• GÉANT 1st phase via Telekom Global
  NetworkBudapest - Vienna and Budapest -
  Bratislava(as Deutsche Telekoms subcontractor)
• GÉANT 2nd phase Connectivity to Zagreb from
  Budapest and Vienna (as DTs subcontractor in
  closed co-operation with Croatian Telecom)

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for GEANT 2,5Gbps Bratislava-Budapest 2,5Gbps
Budapest-Wien 622Mbps Budapest-Zagreb 622Mbps
Wien-Zagreb
Telekom Global Network (TGN)
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Regional perspectives for Matáv

• Strong presence in South-Eastern Europe
• Connectivity to each ex-Yugoslav republic, in
  some cases international 11 protection is
  available
• Stake in Macedonian Telecom , transmission route
  to Albania
• Budapest node in double function regional
  transmission hub and PoP of Telekom Global
  Network (DT)
• regional market knowledge traditional
  partnership with incumbents and business contacts
  with emerging carriers
• flexibility in pricing and reliability in
  operation

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