Press News

Budapest, June 20, 2003

On June 19, 2003 the executives of Matáv's North-East Hungary regional unit held a press meeting in Miskolc where they provided information on the regional results for the past year and the plans for 2003. Participants of the press meeting: Region Chief Tibor Kenesei, Regional Director of the Business Services LOB Károly Király and Directors of the regional units of the Resource Services LOB Zsuzsanna Lengyel-Tóth and Ágostonné Solymosi.

Regional representation in the North-East Hungary region

Regional representation offices in four counties - Borsod-Abaúj-Zemplén, Heves, Nógrád and Bács-Kiskun convey the strategy of Matáv Group. Their daily operations include responding to questions from the municipal governments on telecommunications, and complex problem management (across functional organizations) for the more than 600 towns in the area of the counties concerned. As part of the liaison with the leaders of the municipal governments, we regularly report on telecommunications investments affecting the given region, which helps of the leaders of these towns in their work.

Matáv's role is not restricted to telecommunications services. The company as a responsible corporate citizen is a major sponsor of Hungarian cultural life and civil initiatives. In the last period Matáv backed initiatives such as the University of All Knowledge or the Matáv donation line. Cooperation between Ghymes – a band performing world music rooted in Hungarian folk music – and Matáv continues (in the region, the band will next perform in Encs and Mezőkövesd). This year we continue the tradition of sponsoring the Kaláka Festival held in Miskolc and in the coming season we will again support the Kecskemét Theater in the staging of one of its newer performances.

Under the auspices of the Long-distance Challenge, Matáv launched a 6 week long series of events involving 12 cities. The City Duel between Miskolc and Zalaegerszeg was held on June 7, 2003. Miskolc was the winner so the HUF 500,000 prize went to the Foundation for the Education of Autistic Children in Miskolc.

In 2002 Matáv donated HUF 2,500,000 to social institutions operating in the Miskolc region. In 2003 this support for the needy was raised to almost HUF 3,300,000.. Among others the following organizations received Matáv support: the Adra Vitium Foundation for Equal Chances, the Foundation for the Residents of Edelény, the Marigold Foundation, the Association of Diabetes Patients in Eger, the Foundation for the Students of Primary School No. 46 in Miskolc, the Association of Hungarian Crisis Line Services, the National Association of Crisis Line Services for Children and Youth, the Crisis Line Service in Kazincbarcika, the Foundation for Pediatric Surgery Patients, the Miskolc County Hospital, the Ózd Blue Gull Music Association, the Foundation for Hospital Care of Abaúj Residents, the Foundation for the Ózd-Tábla Primary School, the Gyöngyös Animal Protection Association, the Foundation for Gyöngyös and Region, and the Miskolc Foundation for the Education of Autistic Children.

Technical developments and network operation in the region

The basic activity of the technical service centers – including the Miskolc center– is the operation of the telecommunications networks and the transmission systems using them as well as related innovation. Our operational task is to install local networks to serve Matáv's complete customer base and perform troubleshooting in the region. This organization ensures the complete technical background for the customer access point local networks and those services provided on them. This means more than 9,700 km of local network in the region; almost 5,000 km of local cables in just the Borsod county. In the region 93% of the backbone and regional networks connecting with the national telecommunications network are optical cable.

As a result of large-scale network development projects we have for a while already been able to say that we can provide a conventional telephone line anywhere, as well as that the fixed-line penetration and the number of lines has reached the saturation level in the North-East Hungary region as well. Consequently on the technical side the service quality is improved; focus is on shorter installation time and quality requirements such as reliability and reduction of the fault ratio. In our area we have more than 346,000 fixed lines. Just in Borsod-Abaúj-Zemplén there are over 154,000.

In parallel with the developments in service quality, analog exchanges are being replaced by digital exchanges. An increasingly large segment of customers are provided for from digital exchanges. This modernization process is still under way; currently 77% of the network has been digitalized. 14% of the fixed lines are ISDN channels, which enable maximum utilization of the benefits of fixed-line telephony. Another strategical product that ensures a quality fixed-line connection is ADSL. This offers - over a telephone line - a speed many times that of modem-based Internet connections, and without a usage-based charge. The technical background necessary for this has been established 7 cities in our area in and an additional 15 towns will be covered this year. In Borsod-Abaúj-Zemplén county; Encs, Sárospatak, Sátoraljaújhely, Szerencs, Kazincbarcika, Mezőkövesd, Ózd, Sajószentpéter and Tiszaújváros are included in our plans. We consider it important to connect small towns to the web. In the closer areas of the region we most recently enabled ISDN service in Harsány. In Hangács in the near future we will provide for the availability of not only ISDN, but also ADSL service.

One of our priority tasks is to create the network background that can in addition to serving the requirements of our residential customers, also provide for our business customers. When our development plans are elaborated we try to take into consideration to the greatest possible extent the infrastructure requirements of the region's new ventures, industry parks, housing parks, small area projects, workplaces and equal chance initiatives. We build subscriber optical networks for them, as we have done when providing telecommunications services for one of the major job creating investment projects of the last period - the Bosch plant in Miskolc.

The Miskolc center garnered first place in the quality competition among Matáv's technical centers in both 2001 and 2002. Our quality management system was successfully certified according to the ISO 9001:2000 standard in line with the other organizations of the Matáv Group. Additionally we also attained compliance with the environment-centered management system requirements of ISO 14001:1996

Regional network of Matáv Pont shops

The shop network is the sales channel of the Residential Services LOB's Retail sales division. It is made up of our own Matáv Pont shops and Matáv Pont Franchise shops operated by reseller partners. The currently operating national system of Matáv Pont shops has been created by the management of the company on an ongoing basis since 1999. Most Matáv Pont shops previously functioned as customer care service offices. Matáv's objective with the restructuring was primarily to offer its customers all of the company's products and services at a single point in a quality environment. Another important goal was to provide a pleasant environment for customers still wishing to manage their business personally by providing a larger area than before in modern shops with a standardized design. In Matáv Pont shops customers and potential customers can manage their telecommunications related business, order line access (ADSL, ISDN, analog) and services, access the Internet, buy fixed-line and GSM phones, accessories, phone cards and recharge cards, order Internet services, and get information about Matáv's discount service and phone offerings. The shop network was established primarily for sales, but in the interest of providing the full scope of services and enhancing customer satisfaction, they also provide all customer relations and customer care service functions to customers who go there in person.

Matáv Pont shops are located primarily in county seats and in Budapest, for a total of 24 places throughout the country. The shops are open on weekdays from morning to evening, on Saturdays and in large shopping centers (plazas) even on Sundays. According to customer feedback they feel that personal management of their business gives them a feeling of security, so in addition to the free customer support center (1212) the Matáv Pont stores are crucial for residential customers and small entrepreneurs. This customer demand induced us to set up a network of Matáv Pont franchise shops that now includes 52 partners in Hungary. These shops have an identical design and, offer a portfolio similar to that of Matáv Pont shops, the only difference being that they are operated not by Matáv sales staff, but by our reseller partners. Management of the Matáv Shop Network is divided into three areas: Budapest, Western and Eastern regions.
The Eastern Region, which has its center in Miskolc, includes 6 Matáv Pont shops and 20 Matáv Pont franchise shops.

Network of Matáv owned Matáv Pont shops

Miskolc: The shop with the largest floor space. It is located downtown on Széchenyi utca and operated with a staff of 12 and has the largest range of products on display including Internet and GSM products. Open on weekday from 9 a.m. to 6 p.m., and on Saturdays from 8 a.m. to 1 p.m.

Eger: Offers in addition to the Matáv portfolio the full range of Axelero and Westel products. The shop operates with a staff of 9, and is open on weekdays from 8 a.m. to 6 p.m. and on Saturdays from 8 a.m. to 1 p.m.

Debrecen: Located in the Plaza shopping center this is the most visited shop with the highest turnover. It sells the full range of Matáv, Axelero and Westel products with 12 staff and is open on weekdays from 9 a.m. to 8 p.m. and on Saturdays and Sundays from 9 a.m. to 6 p.m.

Nyíregyháza: Located in the Plaza shopping center, this shop operating with a staff of 9 offers the products of the Matáv Group, and is open on weekdays from 9 a.m. to 8 p.m., and on Saturdays and Sundays from 10 a.m. to 6 p.m.

Szolnok: The shop is located in the heart of downtown Szolnok in a stand-alone building. It offers Matáv as well as Axelero and Westel products, and is open on weekdays from 8 a.m. to 7 p.m. Customers are served by a staff of 9.

Békéscsaba: The shop is located in non-Matáv (LTO) area in a stand-alone building. Operated with a staff of 3, it offers a reduced portfolio and is open on weekdays from 8.30 a.m. to 4.30 p.m. to sell products and provide information to customers.

In addition to the 6 Matáv owned shops, an additional 20 shops are operated in the Eastern Region area by Matáv cooperation partners.

Matáv Pont franchise shops:
Berettyóújfalu, Encs, Gyöngyös, Hajdúszoboszló, Hatvan, Karcag, Kazincbarcika, Kisvárda, Mátészalka, Mezőkövesd, Mezőtúr, Miskolc (Bajcsy Zs. u.), Miskolc (Szemere u.), Ózd, Szerencs, Szolnok, Tiszaújváros

In LTO area:
Gyula, Kunszentmárton, Orosháza

Indirect sales channel in the region

The duty of the Indirect sales channel in the North-East Hungary region is to coordinate and support the work of the resellers and salespersons in Borsod, Heves, Nógrád counties as well as Kecskemét, Cegléd and their surrounding areas. In addition to county seats and cities we also have locations in smaller towns so that if required, our salespersons can reach any place within a short time.
Our customer base includes small and micro ventures (about 18,000 customers) and medium-site enterprises (2,000 customers) operating in the area of the region.
Our basic objective is to enhance customer satisfaction. This can be most efficiently attained on the market by having resellers and salespersons working not only with sales, but also with account management functions. The work of our 38 external partners is coordinated and directed by the Regional Chief of the Indirect channel and 5 internal staff. Currently 24 salespersons and 14 reseller partners are working in this region. When the sales network was developed our major criterion was to be able to offer a full scope of services to our customers, provide proactive contact management and sales through personal contact.

In addition to county seats and cities we also have locations in smaller towns so that if required, our salespersons can reach any place within a short time. Our reseller partners are enterprises with system integration capabilities that employ excellent telecommunications professionals who know not only Matáv's services, but also provide significant assistance in telecommunications consulting, and in mapping existing systems and networks. We charged our key sales partners with the personal management of the largest revenue generating customers managed by our LOB. Personal management covers about one third of our business customers. With our personal account management program we seek to improve the quality and efficiency of account management and strengthen the commitment and loyalty of our salespersons. We continuously strive to enable our customers to use the service that the best suits their requirements as well as optimizing their telecommunications costs. To assist in keeping contact with our customers and in the transfer of information we deliver monthly (starting last year) a color information brochure to the customers. We also regularly organize customer meetings and professional events in the county seats for the region where information is provided on selected current issues.

The Business Services LOB in the region

Matáv's Business Services LOB is the largest systems integration solution provider in Hungary. The duty of the LOB is to make the achievements of telecommunications and IT available to the business customers market segment (key and large customers), which means about 6,000 partners, by providing efficient, customized solutions.

Customers increasingly place an emphasis on quality, error-free operation, complex solutions, custom applications, and the integration and extension of various systems. The demand for higher bandwidth and the interest in high-speed networks is rapidly rising. Matáv personal account managers maintain close relations with their partners, and know the customer's activities and professional background. On the basis of a knowledge of the processes and the goals of the partner, they can identify the customer's infocommunication needs and provide individual proposals to satisfy them. As a result of having more specific information on the market segments we have developed various "professional packages" in cooperation with our partners.

Major local and professional cooperation agreements with key institutions in the region

- TVK Co. Ltd.
Last year the most successful project was the complete reconstruction of the Tiszai Vegyi Kombinát Co. Ltd’s PABX system. The Matáv Group implemented the most up-to-date communication system (ISDN-based PABX, IP technology, direct communication with the mobile carrier).

- Northern-Hungary Regional Waterworks Co. Ltd
Last year we concluded a contract with The Northern-Hungary Regional Waterworks Co. Ltd. (Észak-magyarországi Regionális Vízművek Rt) for a 4-access point Multilan service to ensure data transmission, Internet access and internal mail. This year we modernized their PABXs of which two which were exchanging high traffic now operate as co-exchanges.

- Egererdő Co. Ltd..
We interconnected the company’s 13 sites to create a data transmission system that carries internal traffic and also enables connection to the Internet at one exit point.

Major references (contracts won by tender)

Mezőkeresztesi Takarékszövetkezet – 14 access point Multilan network
Heves Megyei Vízmű Co. Ltd. – PABX system, structured network
Palatinus 94 Ltd. - Complex IP network.

Our services:
calling plans
premium services
ADSL-based private networks
IP-based network, solutions
application development, systems integration
ASP type teleservices
computer networks
bank card systems, solutions
security solutions (e-Fal/e-Wall)
wide scope of e-services (B2B, B2C, e-Munka/e-Work)
authentication and identification services (e-Szignó/e-Signature).

Tibor Kenesei, Chief of the Technical Services Center and Chief of Regional Representation

He has been working at Matáv since 1988 where he was first employed in the area of Operations Management and innovation. He graduated in 1989 from Kandó Kálmán Technical College with a specialization in Switching, then obtained a degree in internal marketing economics at the Foreign Trade College in 1997. He has been Chief of the Miskolc Technical Services Center and Chief of Regional Representation since February 1, 2001.

Károly Király, Chief of the Business Services LOB’s East Hungary Region

He has been working with Matáv and its predecessor since 1970 in, among others, the following positions: Chief of the Repair and Installation Plant (JAVSZER), then Executive Director of Északtel Ltd., then as Director of Matávcom Ltd., and later Head of the Miskolc Sales Department at Matáv's Business Services LOB. Currently he is working as Chief of Regional Sales at Matáv Business Services LOB, Sales Division, East Hungary region.

Zsuzsanna Lengyel- Tóth, Regional Chief of the Residential Services LOB

She has been working at Matáv since 1983. She started working as a investment finance clerk. She obtained a degree in business economics at the Financial and Accounting College in 1983. She has been working in sales since 1997. She has held her current position since April 2000.

Ágostonné Solymosi, Regional Chief of the Matáv Pont Shop Network

She obtained a degree in economics at the University of Economics in 1981. Until 1982 she worked at the Lenin Metallurgic Works (Lenin Kohászati Művek) as a statistician and planning-analyst economist. She started work at the Miskolc Postal Directorate in 1982, then since 1990 has been working at Matáv In, among others, the Organization and Enterprises Department. She then became Head of the Marketing Department. She has been the Chief of the East Region of the Shop Network since 1999.

Small town ADSL developments in the South-East Hungary region

One of Matáv' key goals is to make the high-speed broadband Internet access enabling ADSL service available as soon as possible in most of its service area. This will ensure that its customers can access the web however they wish, with a connection that best suits their requirements.

After the developments to be completed in Q3, 2003 Matáv will introduce a new method for the continuation of these developments. From that time, the process of ADSL service roll-out will depend – in addition to other conditions – on the number of potential customers living in a town not covered yet by the service. When a certain predefined number of service requests are received for a given town, Matáv will accordingly speed up the process of making the ADSL service available in that area.

Requests will be registered on the www.adsl.matav.hu website and through the Internet service providers.

The first step in registration on www.adsl.matav.hu is for the customers to select the Internet service provider that they want to use for the service. Information on the other conditions of registration can be obtained by the customers from the selected Internet service provider. Matáv will provide ADSL service to the contracted Internet service providers on a wholesale basis, who will then provide for the registration of their residential and business customers (none of the Internet service providers will be given priority under this program).
Registration requires the name, installation address, Matáv fixed-line telephone number and customer number for which the customer wants to order the ADSL access. Only one registration will be accepted for each telephone number, and in the case of ISDN lines, only orders for the main number will be accepted..

Under the new program Matáv initially plans developments in the following towns in the North-East Hungary region: Edelény, Gyöngyössolymos, Kecskemét-Hetényegyháza, Kerekegyháza, Ceglédbercel, Szabadszállás.