broadband for all in hungary: challenges, opportunities ... · kálmán kovács hungarian minister...

Kálmán KovácsHungarian Minister of Informatics

and Communications

BroadbandBroadband for for allall inin Hungary: Hungary: ChallengesChallenges, , opportunitiesopportunities

and and resultsresults

The Gothenburg MinisterialConference14-15 November 2005

Results

3,2%

4,4%

6,2%

7,7%

0,2% 0,6%

2,0%

4,1%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

2001 2002 2003 2005 I. név.

Internet penetráció

Szélessáv penetráció

3,1%

9,7%

11,0%

EU10 EU25 EU15

Broadband penetration1 in Hungary2005 1. quarter

Broadband penetration in the EU2005 1. quarter*

1 Subscription per 100 inhabitants Source: KSH, Eurostat

Dynamic broadband expansion

Active state role: Active state role: Fast improving broadband infrastructureFast improving broadband infrastructure

Source: HMIC

JuneJune 20042004

… Ensuring the equality of underdeveloped, commercially less attractive villages:

•• Public NetPublic Net

•• eHungaryeHungary PointsPoints

•• Tax Tax benefitsbenefits for broadband development

•• EU EU FundingFunding for broadband development

Source: HMIC







December 2004December 2004






JuneJune 20052005


Source: HMIC

„Information Society in the Homeland” Programfor Hungarian-inhabited areas

(300 „eMagyar” Points)

Among the leaders in terms ofbroadband price reducing

We experienced in Hungary the fourth greatest reduction

in prices on PPP considering broadband fees

Source: OECD, Communication Outlook 2005

Challenges

Problem of Rural & Remote Areas

46279 180

2422

115275 256

1662

0

500

1000

1500

2000

2500

2004. December 2005.June

Settlements with DSL or CATV internet service

DSL service is available CATV service is available

Both DSL and CATV service is available Neither DSL nor CATV service is available

December 2004December 2004 JuneJune 20052005

Significant Digital Divide

0

50

100

150

200

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80

age

thou

sand

peo

ple

Digitally illiterateOffline PC usage elsewhereOffline PC at homePC and Internet usage elsewhereOffline PC at home, internet usage elsewhereNarrowband at homeBroadband at home

Identifying and eliminating barriers

A C C E S S - a c c e s s ib l e n e tw o r k i n f r a s t r u c tu r e - a f f o r d a b le e n d -u s e r e q u ip m e n t - a f f o r d a b le b r o a d b a n d In t e r n e t s e r v ic e

M O T I V A T I O N - c o n s c io u s n e s s -r a is i n g a b o u t t h e a d v a n t a g e s a n d p o s i t iv e e f f e c ts o f b ro a d b a n d e l e c t ro n ic c o m m u n ic a t io n

C O N T E N T - a t t r a c t iv e c o n te n t o f f e r in g ( e -a d m in i s t r a t io n , e -h e a l th c a r e , e -e n v i r o n m e n t , N a t io n a l D ig i t a l A r c h iv e s , e -b u s in e s s , o th e r a t t r a c t iv e s t a t e a n d m a r k e t b a s e d c o n te n t d e v e lo p m e n t )

S E C U R I T Y C r e a te s e c u r i ty c o n d i t io n s f o r b r o a d b a n d t r a n s a c t io n s ( c o p y r ig h t p r o te c t io n , d a t a p r o te c t io n , a n t i -v i r u s p r o te c t io n ,e l e c t ro n ic s ig n a tu r e s , p r o te c t io n o f m in o r s , s p a m -f i l t e r in g , e t c .)

E D U C A T I O N - o b ta in in g th e d ig i t a l l i t e r a c y r e q u i r e d to u s e in f o r m a t io n a n d c o m m u n ic a t io n e q u ip m e n t - s u p p o r t e d u c a t io n o f in f o -c o m m u n ic a t io n e x p e r t s

M A R K E T M E C H A N I S M S

R E G U L A T I O N( E le c t r o n ic C o m m . A c t a n d o th e r i t e m s o f l e g i s l a t io n )

F I S C A L , P U B L I C P O L I C Y M E A N S

( o r i e n ta t io n , c o o r d in a t io n , s e t t i n g e x a m p le s , f u n d in g )

H O R I Z O N T A L P R I O R I T I E S ( I N N O V A T I O N , E Q U A L O P P O R T U N I T I E S )

Opportunities

• Half of the growth acceleration of the US came from the ICT sectors• The contribution of ICT applying sectors to the growth of productivity is

higher than the ICT manufacturing sector’s• Economies that take advantage of this chance can increase their

competitiveness

ICT employing sector

ICT manufacturer sector

EUUS

ICT Contribution to the Growth ofICT Contribution to the Growth ofProductivityProductivity 19951995--20012001 The “broadband hypothesis”:

“The expansion of broadband electronic communication has a key role in the succeeding of the direct and indirect positive effects of ICT sector on the competitiveness”

Broadband became a high priority in the national politics and in the recommendation of international organisations (OECD, World Bank, European Union)

0,25%0,25%

1,0%

0,4%

Focus on competitiveness

ICT ICT applyingapplying sectorssectors

ICT ICT manufactoringmanufactoring sectorsector

Broadband as a transmission mechanism

ICT Manufacturer

ICTEmployingBB*

Productivity Productivity –– Growth Growth -- CompetitivenessCompetitiveness

Supply sideIndustry, Government, Sevices, Media

Demand side

Consumers, Clients, Education, Patients

Broadband coverage by settlements inHungary

58%

70%

80%

90%

*Forecast

100%

86,1%

61,8%

32,0%

8,0%

22,9%

0,0%

100% 100%93,6%

88,9%

49,6%

32,6%

0,0%0%

20%

40%

60%

80%

100%

2004. December 2005. June

Broadband coverage by settlement type

Budapest County seat Town Village 3000+ Village 1501-3000 Village -1500

Problem of Rural & Remote Areas

0%

5%

10%

15%

20%

0% 50% 100% 150%Growth of Broadband 2004/2003 (percentage)

Bro

adba

nd p

enet

ratio

n to

pop

ulat

ion

(per

cent

age)

EU25 átlaga

EU25 average

„Leaders"„Standing inplace"

„Fallingbehind"

HU

SI

IT

UK

FR

MT EE

LU

LVCZ

LT

IE

SKEL

>150%

PTESDE

AT

PL

CY

FI

SE

NLDK

BE

„Catching up"

Status Status ofof BroadbandBroadband: : ClosingClosing upup……

IICT industryCT industry = = engine of eengine of economyconomy

ICT markets per GDP

Forrás: OECD, ICT Outlook 2005

Thank you for your attention!

broadband for all in hungary: challenges, opportunities ... · kálmán kovács hungarian minister...

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