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General Presentation of Hungarian ICT Market

ICT Market in Hungary (Bn€)

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4,93 5,44 5,96 6,43

0

1

2

3

4

5

6

7

2001 2002 2003 2004 (est.)

Source: EITO, 2003

ICT Market Breakdown in Hungary (mn USD)

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Hardware

User communicationdevices

Datacomm and network equipments

Software

IT services

2500

53,5%

160

3,4%

730

15,6%

330

7%

500

10,8% Communication services

450

9,6%

Source: ING Barings Estimates 2002

ICT Market by Growth of Sectors

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Source: ING Barings Estimates 2002

ICT sector growth in Hungary in 2003 compared to 2002 (%)

3,2

12,5

6,1

12,8

9,5

0 2 4 6 8 10 12 14

ICT equipment

Software products

IT services

Carrier services

TOTAL ICT SECTOR

%

Internet Penetration in Hungary

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0

200000

400000

600000

800000

1000000

2000 2001 2002 2003 2004 2005 2006

Other

CATV

DSL

Dial-up

Developement of Internet subscriptions and corresponding penetration

ICT Market Breakdown in Hungary (mn USD)

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Axelero 48%

EUROWEB/ELENDER 16%

GTS DATANET 15%

Pantel 5%

INVITEL 4%

Source: NHH, 2004 september

Mobile Market

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Three operators T-Mobile (formal Westel) 47.74%

Pannon GSM 33.36%

Vodafone 18.9%

83% mobil penetration 8.317 million users (Inc. prepaid) 7.738 million subscribers 10.7% market growth 2003-2004

Tender for UMTS: no new player, won by the 3 existing players (Danish TDC and Swedish Tele2 were applied)

Source: NHH, 2004 september

Hungarian High-Tech Niches

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Hungary is strong in special ICT services in important niches:

IT, data security, data protection CAD/CAM design character recognition language technology software development for mobile devices embedded mobile applications document management, data processing, e-government applications anti-virus protection digital film-making and coloring

Source: NHH, 2004 september

Governmental Bodies, Professional Organizations

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Ministry of IT and Telecommunication – www.ihm.hu

National Communication Authority – www.nhh.hu

Hungarian Association of IT Companies – www.ivsz.hu

Inter-University Center for Telecom and Informatics – www.etik.hu

John von Neumann Computer Society - www.njszt.hu

Source: NHH, 2004 september

Some Global Players in Hungary

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Source: NHH, 2004 september

ERICSSON (SWEDEN – 300 engineers for telecommunication development)

TATA Sons (India – 130 developers for software)

T-Systems (Germany – Telecom Software development)

Q&R (Greece – ERP, CRM development)

Getronics (Netherlands - Global System and network integrator)

Walt Disney (USA - Animation software development)