MTA » Topics » Internet.

This excerpt taken from the MTA 20-F filed May 21, 2009.

Internet

        Cable operators (e.g., UPC Telekom, Fibernet, Digikábel), alternative service providers based on Unbundled Local Loop ("ULL") (e.g., GTS Datanet, EnterNet), mobile service providers and other ISPs are our competitors on the Internet market. In 2008, we kept our leading position with the continuous increase of the number of ADSL lines, however, our market share declined mainly because of the spread of cable Internet.

        Compared to the previous years, the growth of fixed line Internet penetration was slower in 2008. A technology shift from ADSL to cable Internet can be experienced in the broadband market because in case of cable Internet, higher bandwidth is available at lower prices. Mobile Internet plays an increasingly important role, it represents approximately 25 percent of total Internet subscriptions, however the majority uses mobile Internet as a complimentary service beside fixed line technologies.

        ULL services have only marginal shares in the broadband market, therefore the NCA ordered the decrease of ULL access fees. We expect a slight growth of ULL services, which could lead to more intensive competition.

This excerpt taken from the MTA 20-F filed Feb 22, 2007.
Internet.   T-Online Hungary, our fully-owned ISP subsidiary, offers Internet services based on dial-up, ADSL technology as well as access through cable television, wireless LAN (“WLAN”) and leased lines to provide residential and business customers with narrowband or broadband Internet services at affordable prices.

In 2005, T-Online Hungary increased its subscriber base by 23.5 percent to 328,535. T-Online Hungary is the largest Internet service provider in Hungary with an estimated 42 percent market share based on the number of dial-up subscribers. The number of T-Online Hungary’s broadband (ADSL, cable television, WLAN and leased line) customers reached 247,597 as of December 31, 2005 compared to 154,382 a year earlier.

In 2005, the number of Internet users increased significantly. Internet penetration rate among the population aged 14 and above reached 33 percent in 2005 compared to 26 percent in 2004. By the end of 2005, 19 percent of Hungarian households were connected to the Internet compared to 15 percent at the end of 2004. T-Online Hungary is committed to accelerating Internet penetration growth and has invested a significant amount of resources to develop attractive and innovative content and value added services, such as [origo] Téka video-on-demand, Zeneáruház (music download), T-Online Internet Security and Klip, our Voice-over Internet (“VoIN”) service.

In October 2005, T-Online and Magyar Telekom Plc. introduced a co-branded VoIP service, Klip. Within the first month of operation, approximately 10,000 users registered for this service.

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T-Online began developing an innovative Internet Protocol-based TV (“IPTV”) over Digital Subscriber Line (“DSL”) product in 2005. This new product line will have a great impact on Hungarian viewers’ habits, with pushing passive TV-watching towards interactive content. We believe that the new services will help us better compete against Cable Television (“CATV”) operators, which are able to offer “triple-play” packages of broadband Internet access, cable television and fixed line telephone services, based on a single access platform.

T-Online’s portal, [origo] held its leading position. The daily average number of visitors reached 666,000 in December 2005, representing a 42 percent increase from December 2004.

EXCERPTS ON THIS PAGE:

20-F
May 21, 2009
20-F
Feb 22, 2007
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