Infrastructure networks and the competitiveness of the economy

This paper aims to examine how technical infrastructure networks may contribute to improving the competitiveness of the Hungarian economy. Consequently, our main question will be to establish how certain networks or sectors can promote competitiveness of the entire economy rather than how they could be more competitive in their own field. In the macroeconomic or regional sense competitiveness is interpreted as the entirety of safeguards and preconditions that provide a long term basis for success in a competitive market environment. The review of the economic, social, institutional and facility preconditions of competitiveness has highlighted that practically every component must be backed by a good system of relations: both strong, balanced internal relations promoting co-operation and external relations to assure outward linkages. Despite the above correlation, it would be a fallacy to assume that infrastructure networks as linking elements in general are factors per se improving competitiveness. In accordance with the level of development of the economy, the key forms of activity and the realistically attainable objectives, different linkages and service needs become key for the development of the economy in different stages

Analysis of Hungarian programs for broadband infrastructure development

In an effort to promote the information society, the Hungarian government adopted a number of strategic concepts and action plans, which formed the basis of many calls for proposals to be funded by the government and the European Union alike to achieve the institutional vision. In this article the author analyze in evaluating the government's role in Hungarian broadband infrastructure development programs so far. As a supposal in the course of the five government-funded infrastructure development programs implemented in Hungary by 2009, economic policymakers relegated community-based or community-owned digital telecommunication infrastructure to a heavily limited, stopgap role in terms of impact and extent. The basis of the investigation consisted of the RFPs for all of the five programs, as well as the data series showing the results of the projects already completed or yet to be finished under them. By analyzing them, it was possible to investigate the hypothesis. --broadband,government-funded infrastructure,development programs

Modernizing National Numbering Plan on NGN Platform - Hungarian Case Study

The intensive technological development of the last years brought the overall acceptance of an IP based network and services vision based on the NGN. The realization of the NGN vision, the decision on the migration to NGN sets regulatory tasks, especially in the area of numbering and addressing. The utilization of the opportunities provided by the NGN platform requires the use of IP addresses and names in the core network, the role of the E.164 numbers is taken over by IP addresses. However in case of voice services the identification of end-user access points will remain by the use of E.164 numbers. Migration to NGN doesn't require directly the change of the subscribers' phone number; however the NGN enables among others the implementation of national number portability for fixed telephone service. The opportunities can be realized by using uniform domestic number length and dialling method, practically closed numbering. The introduction of a 9-digit uniform, closed domestic numbering provides a consistent solution for the deficiencies of the present Hungarian numbering plan, too. Recently it can be reached in single step so that the present 9-digit domestic numbers and the short codes remain unchanged, the 8-digit domestic numbers are completed to 9-digit by the insertion of an appropriate digit, as well as the present and new numbering schemes can be in operation simultaneously. --

Deregulation and Enterprization in Central and Eastern Telecommunication - a Benchmark for the West?

The restructuring of telecommunication in Central and Eastern Europe occurs at a time when the classical structures of telecommunication are falling apart worldwide. Coming from the socialist system in which telecommunication did not exist as an independent economic activity, the Eastern European countries have created specific "post-socialist" modes of reform, often outdoing Western countries in terms of speed and radicality. Deregulation and enterprization have dominated the process in all countries, leading to advanced technical standards and a wide segmentation of telecommunication markets. The role of foreign direct investment and technology transfer was particularly important. But the reforms also lead to an increasing social gap between the prosperous users of advanced telecommunication services, and the average citizen for which even telephony has become a luxury good. Our thesis is that CEE telecommunication reform, rather than copying Western models, may become a benchmark for the West, in particular for Western Europe. Technically, the advanced reform countries in Central Europe are about to succeed the leapfrogging process, i.e. the jump from post-war socialist technologies to world-leading edge-of-technology standards. With regard to industry structures, Central and Eastern European countries show that the age of "classical" integrated telecommunication activities is definitely over. Instead, most diversified telecommunication services are integrated in the emerging information sector. Finally, the very notion of telecommunication as an "infrastructure" is put in question for the first time in Eastern Europe. We start to address the two relevant policy issues: modes of regulation, and science and technology policies to accompany the restructuring process.

Challenges in the regulation of broadband in Hungary

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The issues of enterprise growth in transition and post-transition period: the case of Polish 'Elektrim'

Case study of Polish company Elektrim illustrates the changing basis of growth of enterprises between the transition and post-transition periods. Elektrim grew primarily through conglomeration in the transition period. After the exhaustion of this mode of growth Elektrim has started to focus on a few core areas (telecoms, cables, energy). The strategic shift to telecommunications has been based on partnerships with foreign firms and it is likely that this will be the pattern in other areas. In this respect, the case of Elektrim shows the importance of internationalisation for the growth of enterprises in CEE. Based on the case study the paper draws several analytical issues: First, Elektrim's shift from conglomeration to focusing suggests that the institutional context, which drives firm strategy in post-socialist economies like Poland, is, perhaps, also changing. Second, in order to grow Elektrim is forced to enter into equity relationships and partnerships like with French Vivendi. This suggests that the possibilities for firm growth in post-socialist economies, like Poland, through generic expansion are still fewer when compared to growth based on mergers & acquisitions or different forms of alliances. Third, Elektrim's relationship with government is complex and refutes the simplified dichotomy of markets vs. governments. This raises the issue of to what extent post-socialist governments operate as a 'compensatory mechanism' on which firms like Elektrim can rely to grow. Fourth, the opening of the CEECs has led to relocations of EU and other MNCs into this region with the result that they are also transferring the oligopolistic competition from EU into new markets. The case of Elektrim shows how CEE companies and goverment regulations become factors in the oligopolistic competition between big EU companies. CEE companies and governments may use this competition to their advantage but also their limited bargaining powers may lead to outcomes unfavourable to them