Budapest, March 20, 2002

In the coming days Matáv will open negotiations with the alternative service providers on the network interconnection agreements. Matáv maintains its commitment to liberalization and is intent on promoting the creation of the conditions of genuine liberalization by concluding the interconnection agreements as soon as possible. It naturally also continues talks with the Internet service providers on questions of sharing Internet-related revenues.

The conclusion of network interconnection agreements between Matáv and the alternative telecommunications service providers is one of the principal conditions of genuine liberalization. Matáv has already reached agreement with Vivendi on the interconnection of networks; this was possible through the modification of an agreement the two operators made earlier, before the Act on Communications entered into force. Under the regulation, if Matáv wants to make a new interconnection agreement, it has to submit for approval to the Communications Arbitration Committee (HDB) a reference interconnection offer which will underlie all future interconnection agreements. Matáv has submitted the reference interconnection offer by the specified deadline but several months may pass until the approval by the HDB.

From the beginning Matáv's goal has been to help genuine competition start as quickly as possible. So Matáv decided to contact those service providers that intend to make an interconnection agreement with Matáv, start negotiations with them and conclude the interconnection agreements as soon as possible. The draft that underlies the agreements to be concluded is in harmony with the reference interconnection offer submitted to the HDB. Naturally, once the authorities approve the RIO, the conditions specified by the authorities will be enforced, but until that time this bridge-gap solution can help offset the obstacle – which is beyond Matáv's control – to the broadening of competition.

Matáv remains committed to liberalization so, in an effort to speed up competition in the market, it is seeking to make an agreement with its partners which is favorable both for Matáv and its partners. Proof of this is that Matáv is ready to make the interconnection agreements with the alternative service providers and that it naturally continues negotiations with the Internet service providers about the questions of sharing Internet-related revenues.