Press News

Budapest, March 5, 2004

The first Hungarian digital telephone exchange was put into operation at Szombathely on February 27, 1989. With this step, a Capex project was completed which qualifies as unique from various aspects in the history of domestic telecommunications. The installed digital telecommunications system was the first one in Hungary which complied with modern requirements, and for the first time 104 towns/villages were connected to international long-distance calls concurrently. The installation of this digital system, still on the COCOM list at the end of 1988, also accelerated the settlement of multinational companies in Hungary.

New technology brought significant qualitative changes in this region including Hungary as well, as manually operated telephones and exchanges (resembling the ones used at the beginning of the 20th century) and a rotary main exchange typical for the middle of the century were replaced by a digital exchange system complying with modern world standards. As a consequence of this Capex project, nearly 27,000 customers were able to enjoy the advantages of modern technology within a short time as compared to the 7,600 subscribers connected to the old system.

Telephone service in the villages underwent enormous developments. The time restrictions on telephone usage (which are hardly understandable today) were eliminated, and phone calls could be made all around the clock. People living in the towns/villages equipped with automatic exchanges could also experience a significant qualitative change; it was no longer necessary to wait for the dial tone. By now, this has become an everyday, natural feeling. The computer-controlled exchange system enabled the use of previously unknown services. These include call forwarding, call waiting, conference call and itemized bill services which enable the accurate tracing of phone usage.

The significance of the Capex project was highlighted by the fact that the inauguration ceremony of the new exchange held 15 years ago was attended, in addition to the Hungarian and foreign companies managing the project, by the representatives of the Hungarian and Austrian governments and the ambassadors of Austria, France and Canada to Hungary. The newly established telecommunications infrastructure was also one of the factors which accelerated the settlement of large multinational companies (GM, Philips etc.) in this region.