Press Releases

Budapest, March 24, 2014 11:35

The GSM service was launched in Hungary 20 years ago, in March 1994. In the past two decades Telekom customers alone used 155 years of speech time* and sent 9 billion SMS messages. In a nutshell: digital technology gaining ground, followed by explosion-like data traffic growth. By now the net roams on our mobile phones with 4G speed.

In the past 20 years keeping in touch with mobile phones and sharing experiences became  dominant and an ever more important part of our life. The dominant role of mobile phones and their increasing popularity is well proven as currently there are more than 11.5 million mobile subscriptions in Hungary. Adding the talk time minutes used by customers of Telekom (and its legal predecessors: Westel, Westel 900 and T-Mobile) in 20 years*, the result is incredible: altogether they talked for about 81.6 billion minutes, which is 1.36 billion hours, equalling 155 thousand years – in addition, Telekom’s mobile customers exchanged about 9 billion SMS text messages.

The GSM system – already featuring digital technology – had numerous advantages versus the analogue NMT 450, like better quality speech encoding, substantially bigger network capacity and the possibility for Pan-European and later global roaming. Upon the original introduction of mobile telephones, their size was of a smaller bag, weighing 4 kilograms – in the GSM era those were replaced by smaller versions, even pocket size terminals.

In GSM systems – including the network of the largest mobile operator, delivered by Ericsson – initially only voice services and text messages (SMS) could be offered, packet switched data services – with the development of radio data transmission technology – only started their glorious march after the turn of the millennium. In 2011 data speeds available with mobile internet was 9.6 kbps. Currently, on the 4G network of Telekom data download speeds are 6,250 times faster, even with a smartphone. A standard size DVD film could have been downloaded at that time, using the technology of that age in 45 days, whereas today it takes 10 minutes.

In GSM systems – including the network of the largest mobile operator, delivered by Ericsson – initially only voice services and text messages (SMS) could be offered, packet switched data services – with the development of radio data transmission technology – only started their glorious march after the turn of the millennium. In 2011 data speeds available with mobile internet was 9.6 kbps. Currently, on the 4G network of Telekom data download speeds are 6,250 times faster, even with a smartphone. A standard size DVD film could have been downloaded at that time, using the technology of that age in 45 days, whereas today it takes 10 minutes.
In the coming 20 years new generation networks can serve even twice the current volume of subscriptions, keeping pace with the massive growth of smart devices and machine-to-machine (M2M) and machine to man connections. According to Ericsson’s research, projecting the consumer trends of 2014 and the next years, there will be massive demands for applications available for smartphones within all economic sectors and social groups, and this will radically change our everyday life. The number of connected devices increases, raising the possibility to introduce new services to all age groups and consumer segments. Beside excellent quality services and the positive network experience, digital literacy becomes ever more important, as well as making safe internet usage even more widespread. Intense use of new technologies and infocommunication solutions contribute to improving the quality of life, the efficiency of enterprises and the international competitiveness of the Hungarian economy.

About Ericsson Hungary
Ericsson Hungary – currently employing almost 1,700 – is one of the largest companies in Hungary, active in telecommunication and IT research, software and hardware development. The company’s activity is exemplary regarding the chain of education-core research-applied research-industrial implementation. The company is the largest supplier of Magyar Telekom in the fields of mobile network development and modernisation, with its market leader solutions providing the continuously high standard, secure, cost and energy efficient operation of the mobile network. As strategic partner of Magyar Telekom, the intellectual center acts as the driver of cooperation, by directly projecting technological developments and solutions which promote the further improvement of the competitiveness of the company and the industry.

About Magyar Telekom
Magyar Telekom is the principal provider of telecom services in Hungary. It provides a full range of telecommunications and infocommunications (ICT) services including fixed line and mobile telephony, data transmission and non-voice as well as IT and systems integration services. . With its network development capital expenditures and wide ranging innovative activities Magyar Telekom intends to promote the more intense use of new digital technologies and infocommunication solutions.

*Total outbound minutes of Telekom (and its predecessors offering mobile radio telephone service) customers were taken into considation, by adding those up.