Foreign telephone operators and computer companies operating in Hungary will soon be allowed to compete for local network, mobile communications and data transmission contracts. The Hungarian parliament has, at last, approved the Telecommunications Act, which provides a legal framework for deregulation. Although the state will retain ownership of the basic telephone system, other services will be put out to bid or licensed. The legislation, passed a year behind schedule, received a luke-warm reception from international vendors, saying that it may prove too little too late. Both Nynex Corp and Bell Atlantic Corp pulled out of Hungary because of the delay. AT&T Co has not yet established a presence in the country, though rumours in the local press are that it is reconsidering its position. GTE Budapest’s representative, Leslie Martinkovics, said that he still hadn’t received a full copy of the act, which is not yet available in English. In an interview with Budapest Week, he warned of ‘last minute back-room deals’ prior to implemenatation. Hungary has 12 telephones per 100 residents compared with a European average of 30, and 60 in the US. According to official statistics, it takes an average of 12 years from the application date for a domestic line to be installed.
