The Hungarian government has awarded 23 contracts, some to foreign-led consortia, to run local telecommunications services. It has also indicated that it is prepared to become the first country after the UK to allow local telephone companies to offer cable television services. State operator Matav won eight of these licences. Gyorgy Schamschula, Hungary’s minister of transport, telecommunications and water management, said 41 tenders were submitted for 23 areas. No bids were received for two further regions – both of them poorly developed – and these were therefore also awarded to Matav.
Eight-year monopoly
The tenders raised $7,250m altogether, and the successful bidders are expected to invest $17,700m in total over three years. The agreement sets an annual 15.5% development rate for phone line growth, which the government expects to eliminate queues by 1997. Concessionaires must supply a line to 90% of customers within six months, and the remainder within a year. The 25-year concessions can be extended once for 12 years six months, and also guarantee an eight-year monopoly in the given area. All the bidding consortia were required to include a locally-owned shareholding of at least 25% plus one share. Matav Rt won the contracts for Baja, Debrecen, Kiskoros, Kiskunhalas, Nyiregyhaza, Szentendre, Szekesfehervar and Szolnok, and got Kisvarda and Mateszalka by default. A consortium of Hungarotel and Central European Telecom, CET, won the tenders for Bekescsaba and Oroshaza; United Telecom Services, UTS, together with Dunatel, won the licence for Dunaujvaros; United and EGOM-Com won Esztergon; and United and Kisdunacom won Szigetszentmiklos. Digitel 2001 was successful in Godollo and Vac, while Jasz-Com Rt won Jaszbereny and the MCG consortium won Monor. The Hungarian Telephone & Cable Corp teamed up with KeletNograd Com to win in Salgotarjan, and with Raba-Com Rt to win in Sarvar. Compagnie Generale des Eaux SA of France took the licences for Szeged and Szentes, while a consortium of Unted Telecom and Bakonytel were successful in Veszprem. Hungarian Telephone & Cable has also said that it is negotiating with an unnamed international telecommunications company over a strategic partnership and it expects to make an announcement soon.
