3G Will Dominate Hungary’s Mobile Services Market by 2012, Pyramid Research Finds

CAMBRIDGE, Massachusetts - Revenue from 3G-based mobile services will grow rapidly over the next
four years in Hungary and will overtake 2.5G service revenue by 2012 as more
subscribers migrate to broadband mobile data services, according to a new
report from Pyramid Research (www.pyr.com), the telecom research arm of the
Light Reading Communications Network (www.lightreading.com).

“Communications Markets in Hungary” offers a precise, incisive profile of
the country’s converged telecommunications, media, and technology sectors
based on proprietary data from our research in the Hungarian market. This
26-page report provides detailed competitive analysis of the fixed and mobile
sectors, tracks the market shares of technologies and services, and monitors
the introduction and spread of new technologies such as WiMaX, IPTV, and
VoIP. This executive study provides a holistic view of the Hungarian
communications market by analyzing key trends, evaluating near-term
opportunities, and assessing upcoming risks factors. Download an excerpt of
this new report here:
www.pyramidresearch.com/downloads.htm?id=18&sc=PR031909_CIRH

The telecom market in Hungary generated US$5.2 billion in service revenue
in 2008 and will be worth US$5.6 billion by 2013, notes Sylwia Boguszewska,
analyst at Pyramid Research and co-author of the report. “The competition for
3G and mobile broadband is intensifying among the three mobile operators,
T-Mobile, Pannon, and Vodafone,” she says. “3G accounts will increase to 62.1
percent of subscriptions by 2013 from its current 9.8 percent penetration.
Although 2G still dominates the Hungarian market today, it is expected to
disappear by 2013 - with 4G to enter the market in 2010 and take around 2.0
percent of subscriptions by 2013.”

The increase in 3G availability will result in higher revenues from
mobile data services, Boguszewska says. “Mobile data’s share of the total
revenue will double, increasing from 11.4 percent in 2008 to 20.9 percent in
2013 due to the growing share of broadband, as well as a significant increase
in data ARPS,” she explains. “By 2013 non-messaging services, such as
ringtones, games, music, and data cards, will reach 50 percent of all mobile
data revenue, up from 25 percent in 2008,” she adds.

Hungary’s operators will face increasing competition in light of
consolidation, broadband regulation, and new licensing. “At least two new
mobile telephone service providers may appear in the Hungarian market, with
five operators acquiring additional frequencies, due to the National
Communications Authority of Hungary (NHH) announcement of tenders for a
fourth GSM-UMTS license,” says Boguszewska. Pyramid anticipates that
incumbent operator Magyar Telekom’s share of the fixed market will decrease
from 62 percent in 2007 to 40 percent in 2013 due to increased competition
and the migration to mobile and broadband. “However, given its strategic
position as the only integrated operator, Magyar Telekom will remain the
dominant player in this market,” says Boguszewska.

“Communications Markets in Hungary” is part of Pyramid Research’s Europe
Country Intelligence Report Series. Pyramid Research’s premium Country
Intelligence Reports are the industry’s best available analysis on market
trends, regulatory environments, and competitive dynamics for 60 countries
worldwide.

Download an excerpt of this new report here:
www.pyramidresearch.com/downloads.htm?id=18&sc=PR031909_CIRH

“Communications Markets in Hungary” is priced at US$990 and can be
purchased online here:
www.pyramidresearch.com/store/CIRHUNGARY.htm?sc=PR031909_CIRH or
through Dave Williams via email at dave.williams@pyr.com or telephone at
+1-858-485-8870.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media, and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies, and emerging business models,
powered by the bottom-up methodology of our market forecasts for over 100
countries - a distinction that has remained unmatched for more than 25 years.
As the telecom research arm of the Light Reading Communications Network,
Pyramid Research works with Heavy Reading, providing the communications
industry’s most comprehensive market data, trusted research, and insightful
technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading
online media, research, and focused event company serving the US$3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading’s
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
our communities created around our global face-to-face events, Interop, Web
2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly
connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM’s businesses inform markets and serve
professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated
events, online, print and business information products. Our 6,500 staff in
more than 30 countries are organized into specialist teams that serve these
communities, bringing buyers and sellers together, helping them to do
business and their markets to work effectively and efficiently. For more
information, go to www.unitedbusinessmedia.com.

Press contact:
Jennifer Baker
+1-617-871-1910
jbaker@pyr.com

Source: Pyramid Research

Jennifer Baker, +1-617-871-1910, jbaker at pyr.com