Review from the
Eastern outskirts
A CEE operator’s perspective on SERENATE
by Béla Gellai
Matáv - Hungarian Telecommunications Company Limited
1
Summary
•Telecommunications in CEE after velvet/bloody
revolution(s)
•EU sponsored initiatives: PHARE and other regional
development projects
•Deregulation at the time of IP-IT bubble-bursting
•Flexible and reliable incumbents meet the demands
2
Post-revolution telecoms...
• Transition from National PTT in planned economy into national
service provider stock-company(ies) in market economy
• Technological metamorphosis:
shift from copper to fibre, analogue - digital, rotary - crossbar digital, PDH - SDH - ATM -WDM
• Change in management style:
strong technology-based hierarchy functional management model ruled by economists overwhelming marketing orientation, divisional management
and EBITDA-kingdom
• Support from the Western side : technical-scientific consulting,
management consulting, restructuring funds, IMF WB and
other development loans/programs
• Strategic partners through privatisation
3
Regional telecom development in EU ante-room
+ Sponsoring the break-through
in telecom technology
+ Participation in establishing
market economies and national
telecom operators
+ Co-ordination of international
network development in the
region (TEL, TET, TAE and other
projects)
------------------------------------Chain of well-equipped, strong
incumbents-monopolists with
Western-style management
integrated in a meshed
international network
4
Deregulation
Legislation environment tailor-made, supportive of emerging
carriers and forward-looking
Market liberalisation time-settings almost according to EU
milestones
CEE alternative operators and public utility companies entering
into partnership
Global network operators appearing in the region
but a bit late…
Market growth rate smaller than expected
Operational margins shrinking
Price war in data market destabilising players
Bad news from the stock-exchange
5
Incumbents meet the demands
(Matáv’s example for contribution)
• First 34 Mbps link to Vienna in TEN-34
• Expanding it to TEN-155
• GÉANT 1st phase: via Telekom Global Network
Budapest - Vienna and Budapest - Bratislava
(as Deutsche Telekom’s subcontractor)
• GÉANT 2nd phase: Connectivity to Zagreb from
Budapest and Vienna (as DT’s subcontractor in closed
co-operation with Croatian Telecom)
6
Bratislava
Wien
Győr
Sopron
Budapest
TGN PoP
Székesfehérvár
Zalaegerszeg
Keszthely
Nagykanizsa
for GEANT:
2,5Gbps Bratislava-Budapest
2,5Gbps Budapest-Wien
622Mbps Budapest-Zagreb
622Mbps Wien-Zagreb
Pécs
Zagreb
7
Telekom
Global
Network
(TGN)
Regional perspectives for Matáv
•Strong presence in South-Eastern Europe
•Connectivity to each ex-Yugoslav republic, in some cases
international 1+1 protection is available
•Stake in Macedonian Telecom , transmission route to
Albania
•Budapest node in double function: regional transmission
hub and PoP of Telekom Global Network (DT)
•regional market knowledge: traditional partnership with
incumbents and business contacts with emerging carriers
•flexibility in pricing and reliability in operation
8
UKRAINE
S L O V A K I A
SLOVAKIA 2.
Salgótarján-Lucenec
STM-4
SLOVAKIA 1.
Mosonmagyaróvár-Bratislava
UKRAINE
Nyíregyháza-Uzgorod
140 Mbps
2 x STM-16
Záhony
Somoskőújfalu
Miskolc
Salgótarján
AUSTRIA 1.
Balassagyarmat
Mosonmagyaróvár-Wien
2 x STM-16
Rajka
Nyíregyháza
Eger
Hegyeshalom
Vác
Győr 1.
Sopron
Esztergom
Tatabánya
Győr 2.
BUDAPEST
Gödöllő
Jászberény
HUNGARY
AUSTRIA
Szombathely
AUSTRIA 2.
Sárvár
Körmend-Fürstenfeld
1 x STM-16
Szigetszentmiklós
Székesfehérvár
Monor
Körmend
Zalaegerszeg
Ártánd
ROMANIA 2.
Cegléd
ÜFA
Tapolca
Berettyóújfalu
Szolnok
Veszprém
Szentgotthárd
Debrecen
Budapest
Biatorbágy
Pápa
Mezőkövesd
Gyöngyös
Szentendre
Dunaújváros
Siófok
Berettyóújfalu-Oradea
STM-4
ROMANIA
Kecskemét
Keszthely
Békéscsaba
Szentes
Lenti
SLOVENIA
Marcali
Kiskőrös
Paks
Kiskunhalas
Nagykanizsa
Zalaegerszeg-Maribor
STM-4
Secondary exchange
Orosháza
Letenye
SLOVENIA
Primary exchange
Szekszárd
Kaposvár
Network node
Röszke
Baja
Szeged
Nagylak
Satellite earth station
CROATIA 1.
Pécs
Keszthely-Varazdin
STM-4
Hercegszántó
Szigetvár
Mohács
Rábaszabolcs
Pécs- Sombor
2 x STM-4
Szeged-Nagylak
YUGOSLAVIA 1.
STM-4
STM-4
STM-4
Szeged-Subotica
2 x STM-4
Pécs-Osijek
BOSNIA
Pécs-Tuzla
STM-1
9
YUGOSLAVIA
YUGOSLAVIA 2.
CROATIA 2.
CROATIA
STM-16
ROMANIA 1.
International SDH network of MATÁV
STM-1/140 Mbps
Microwave