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.