Investor Releases

Matáv tariffs to be changed on September 1

August 07, 2002

Matáv will change some of its regulatory tariffs as of September 1. A decree issued in January 2002 by the Office of the Prime Minister provides the framework for the modification of regulatory tariffs in the case of telecommunications service providers with significant market presence.

According to the decree, in the first half of the year only subscription charges May be increased. In addition the decree also specifies that landline telecommunications tariffs May be increased by up to 4% for the year. Accordingly subscription charges were adjusted on February 1. Since July 1, Matáv has had the opportunity to further increase tariffs. Due to its business policy, Matáv will only partially use the maximum rate allowed by the legislation for the tariff increase.

Monthly subscription for analog lines will increase on average by 2.99% as shown in the attached table. The call setup fee will decrease by 10.53%. The tariff for local calls in the peak period (between 7am and 6pm) will increase by 10%, and by 8.33% in the off-peak period (between 6pm and 7am, week-ends and holidays). In terms of the prices of the Basic package, considering the drop in the call setup fee, the local tariffs will increase on average by 5.19%.

Domestic long distance tariffs for calls terminating within the Matáv network will remain unchaged.

Tariffs will change in the case of calls terminating in the networks of Vivendi, HTCC, Monortel and Emitel, as the telecommunications Arbitration Committee has approved interconnect fees for these providers in their respective Reference Interconnect Offers higher than that of Matáv. As a result, the prices of the most popular packages (Basic, Minimal, Chatting) for calls terminating within these networks will increase with effect from September 1.

Mobile and international tariffs will remain unchanged.

Annex: Tariff tables showing tariffs effective from September 1, 2002 and charges before September 1 (net)

Summary table of tarrifs (Prices in HUF, excluding VAT)

Tariff packages Basic Until Aug 31, 2002 Basic from Sep 1, 2002 Price index
Monthly fee
Residential main line 2398,40 2464 102,74%
Residential two-party line 807 980 121,44%
Business main line 3224 3320 102,98%
Business two-party line 1090 1110 101,83%
Minutes peak Off-peak peak Off-peak peak Off-peak
Local, agglomeration I. 7,20 3,60 7,92 3,90 110% 108,33%
Agglomeration II
Matáv-Matáv 15,00 9,00 15,00 9,00 100% 100%
Matáv-Vivendi 15,00 9,00 16,00 10,08 106,67% 112%
Matáv-Monortel 15,00 9,00 16,60 9,44 110,67% 104,89%
Domestic Long Distance III
Matáv-Matáv 24,00 12,00 24,00 12,00 100% 100%
Matáv-Vivendi 24,00 12,00 25,00 13,12 104,17% 109,33%
Matáv-Emitel 24,00 12,00 25,40 12,36 105,83% 103%
Matáv-Monortel 24,00 12,00 25,60 12,44 106,67% 103,67%
Matáv-HTCC 24,00 12,00 26,52 13,86 110,5% 115,5%
Mobile
06 60 60,00 40,00 60,00 40,00 100% 100%
Westel 60,00 40,00 60,00 40,00 100% 100%
Pannon GSM 60,00 38,00 63,00 38,00 100% 100%
Vodafone 60,00 45,00 61,00 45,00 100% 100%
Call-setup fee 3,80 3,40 89,47%