Hitchhiking on infostrada CEE incumbent operators’ contribution to NREN’s initiatives 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 •MATAV’s contribution to European initiatives •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
Matáv’s example for contribution • First 34 Mb later 155 Mb link to Vienna in TEN-155 •GÉANT 1st phase: 2,5 Gbps Budapest - Vienna and Budapest - Bratislava (as T-Systems subcontractor) • GÉANT 2nd phase: Connectivity to Zagreb from Budapest and Vienna (co-operation with T-Systems and Croatian Telecom) •GÉANT 3rd phase: Upgrading Budapest-Vienna connectivity up to 10 Mbps (being implemented) 6
Bratislava Wien
Győr Sopron
Budapest TGN PoP
Székesfehérvár Zalaegerszeg Keszthely Nagykanizsa
Pécs Zagreb
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Telekom Global Network (TGN)
for GEANT: 10 Gbps Wien-Budapest 2,5Gbps Bratislava-Budapest 622Mbps Budapest-Zagreb 622Mbps Wien-Zagreb
UKRAINE
S L O V A K I A
SLOVAKIA 2.
Salgótarján-Lucenec SLOVAKIA 1.
STM-4
Mosonmagyaróvár-Bratislava
UKRAINE
Nyíregyháza-Uzgorod 140 Mbps
2 x STM-16 Záhony Somoskőújfalu AUSTRIA 1.
Mosonmagyaróvár-Wien 2 x STM-16
Miskolc
Salgótarján
Balassagyarmat
Rajka
Nyíregyháza
Eger Hegyeshalom
Győr 1.
Sopron
Vác
Esztergom Szentendre
Tatabánya
Győr 2.
Mezőkövesd
Gyöngyös
BUDAPEST
Gödöllő
AUSTRIA
Debrecen
Jászberény HUNGARY
Szombathely
AUSTRIA 2.
Sárvár
Körmend-Fürstenfeld 1 x STM-16
Budapest
Biatorbágy
Pápa
Szigetszentmiklós
Székesfehérvár
Monor
Körmend Szentgotthárd
Zalaegerszeg
Dunaújváros
Siófok
Berettyóújfalu-Oradea STM-4
ROMANIA
Kecskemét
Keszthely
Békéscsaba Szentes
Lenti
SLOVENIA
Ártánd ROMANIA 2.
Cegléd
ÜFA
Tapolca
Berettyóújfalu
Szolnok
Veszprém
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
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YUGOSLAVIA
YUGOSLAVIA 2.
CROATIA 2.
CROATIA
STM-16 ROMANIA 1.
International SDH network of MATÁV
STM-1/140 Mbps Microwave
MATÁV’s presence in Romania • Combridge SRL our partner-company • Network development finalised in 2003 March • Combridge SRL runs its business as a Carrier Sales company selling: – World-wide IP transit – International Bandwidth – International Voice
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IRU PoP Leased Capacity
Regional perspectives for Matáv •Strengthening presence in South-Eastern Europe and acting as regional sales force of T-Systems International •Budapest node in double function: regional transmission hub and PoP of Telekom Global Network (T-Systems) •Connectivity to each ex-Yugoslav republic, in some cases international 1+1 protection is available •Using our stake in Macedonian Telecom to provide transmission paths to Bulgaria, Albania etc. •Traditional partnership with incumbents and challenging co-operation with emerging carriers in the region (Bulgaria,Serbia etc.) 10
Our credo • Be reliable in operation (and finance) as an incumbent company ! • Be flexible in pricing (and entrepreneurship) as an alternate service provider !
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You are entering the zone of Europe ...
• Match the speed ! • Overcome (your own) difficulties! • The way is open ! 12
