Press Releases

Budapest, July 20, 2001

After several years of preparatory work by experts of the two companies, Matáv and PanTel Rt. have reached agreement on the interconnection of their networks. The agreement covers cooperation for the provision of IP-based voice services and collaboration in the field of technical and traffic services.

In view of the liberalization of the market, interconnection of the networks is essential. According to Article 7 of amended Act LXXII of 1992 on telecommunications, telecommunications service providers may conclude network agreements with one another under the terms and conditions specified in the relevant government regulation. In certain cases specified in the regulation (e.g. in case of an offer containing appropriate conditions for the interconnection of public networks) the service providers are under obligation to reach an agreement. Matáv and PanTel have held negotiations and eventually reached an agreement on the basis of this regulation. In future, telecommunications service providers will make interconnection agreements on the basis of the recently approved Act on Communications.
Matáv took an exemplary step in reaching an agreement with an alternative service provider about half a year before liberalization. Matáv hopes that PanTel will make similar agreements based on reciprocal advantages with the local telephone companies so that their customers will also enjoy the benefits of the IP-based voice communication services offered by PanTel as soon as possible in the entire territory of the country.

PanTel, as alternative network operator, has been building its network and customer base under market conditions. As a new market entrant, it is strengthening its presence by offering innovative and cost-efficient solutions.
Since PanTel is offering interconnection traffic services to its customers at prices developed jointly with Matáv, this enables the company to continue to offer its residential and business customers services at competitive prices in a significant part of the country. In order to implement the interconnection of the networks, PanTel will make additional investments to its network.
“Matáv appreciates the recently signed network agreement as an important milestone in preparation for liberalization of the market. Both PanTel and Matáv have acquired a great deal of experience in the course of coordinating positions and we will certainly make good use of this experience when negotiating network agreements under liberalized market conditions,” said Elek Straub, Chairman and Chief Executive Officer of Matáv.
“I consider this agreement an exemplary contribution to the preparation for liberalization of the Hungarian telecommunications market. It is the first time that a network interconnection agreement has been reached between a dominant incumbent service provider and an alternative operator. We are proud that once again PanTel played a pioneering role on the Hungarian telecommunications market. Although reached as a result of long and intensive efforts, this agreement was made possible by the special attention given by the top management of Matáv. The Hungarian Communications Authority contributed to successful elaboration of the conditions of the agreement by acting as a conciliator of interests,” said Pál Horváth, CEO of PanTel Rt.