Press News

Budapest, June 17, 2005

Magyar Telekom was the first in Hungary to acquire a customer through local loop unbundling in the Invitel service area. The contract of the Veszprém customer with Invitel will cease, and while keeping its telephone number, it will be entirely the subscriber of Magyar Telekom. The new subscriber can buy both voice and ADSL data service from Magyar Telekom.

Through the practical implementation of the local loop unbundling agreement Magyar Telekom may, on the one hand, increase the number of its customers, and on the other hand, without having to build a parallel network it can provide services for those customers who do not live in Magyar Telekom service area. Magyar Telekom can also provide broadband service in the Invitel service area for its newly acquired customers.

The unbundling agreement with Invitel also proves that Magyar Telekom can make more attractive offers in the market than its competitors also in a competitive environment.

Local loop unbundling is an obligation specified for the telecommunications service providers in the Act on Electronic Communications. According to the regulation, every carrier is under obligation to lease the network it operates in its own service area, to other service providers. In this case, Magyar Telekom is using a pair of wires operated by Invitel and connecting the customer to the network. With this solution the construction of the highest unit cost network section can be replaced with rental.