Magyar Telekom
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| Company type | Public limited company |
|---|---|
| BPSE: MTELEKOM BUX Component CETOP20 Component | |
| Industry | Telecommunication |
| Founded | 1991 |
| Headquarters | , |
Area served | Central and Eastern Europe |
Key people | Rékasi Tibor (CEO) |
| Products | Fixed Telephony, Mobile Telephony, Broadband Internet, IT Services, Networking Solutions, Digital TV |
| Revenue | HUF 700,120 million (2021)"Annual Report 2021" (PDF). |
| HUF 92,809 million (2021) | |
| HUF 58,997 million (2021) | |
| Total assets | HUF 1,400,671 million (2021) |
| Total equity | HUF 692,975 million |
Number of employees | 6,786 (2021) |
| Parent | Deutsche Telekom (61.39% of shares) |
| Subsidiaries | Makedonski Telekom |
| Website | www |
Magyar Telekom Nyrt. (officially Magyar Telekom Távközlési Nyilvánosan Működő Részvénytársaság, lit. 'Magyar Telekom Telecommunications Public Limited Company') is Hungary’s leading telecommunications service operator and it is among the biggest companies in Hungary. The company provides telecommunications and info-communications (ICT) services, including fixed and mobile voice and data services, non voice services, as well as IT and systems integration services. It offers its services under the Telekom brand for residential, small and medium-sized business customers, and under the T-Systems brand for enterprise, public administration and institutional customers. Magyar Telekom Plc. is the 100% owner of T-Systems Hungary and the majority owner of Makedonski Telekom, the leading integrated telecommunications operator in Northern Macedonia. Deutsche Telekom AG holds a 61.39% stake in Magyar Telekom Plc.[1]
Until 6 May 2005, it was known as Matáv (Magyar Távközlési Rt. – Hungarian Telecommunications PLC). The company was formed under the name of Magyar Távközlési Vállalat (Hungarian Telecommunications Enterprise) in December 1989, when Magyar Posta (Hungarian Post) was split into three separate enterprises. On 31 December 1991, the company was re-structured as a public limited company as Magyar Távközlési Rt., and the company remained in 100% state ownership until the end of 1993. On 1 July 1993, the Telecommunications Act came into effect, making it possible to privatize the company. A consortium was formed between Deutsche Telekom and Ameritech, which was named MagyarCom, and bought into the company a share of 30.1% for a price of US$875 million.
History
Early years
On 31 December 1989, after becoming one of the three sections of the Hungarian Post service area, the Hungarian Telecommunications Company (Matáv) was founded in 1991 on 31 December as telecommunications operator Magyar Telecom Rt. The company was completely owned by the state until the end of 1993, when the Telecommunications Act, which is classified as a service concession to the public telephone, mobile telephone, paging and public service, came into effect 1 July 1993. A contract ended on 22 December, and Matáv became the owner of 30.1% of Deutsche Telekom and Ameritech International telecommunications companies, MagyarCom Consortium.[2] During the privatization process MagyarCom acquired a majority stake under the contract signed on 22 December 1995. The effect of the two companies forming a consortium of $852 million to 67.3% was Central and Eastern Europe's largest privatization, and also the largest foreign investment in Hungary.[3]
Deutsche Telekom's majority
On 14 November 1997, the trading of Matáv shares began in Budapest and New York City, placing 26.31% of the shares on the market, which was the largest share subscription ever held in Hungary, making Matáv the first Central European company to be listed on the New York Stock Exchange. In the summer of 1999, ÁPV Rt. (Hungary's State Privatization Property Agency) sold the last package of shares of Hungary's 5.75%, but still held the golden share.[4]
On 3 July 2000, in accordance with the shareholder agreement between SBC and Deutsche Telekom, Deutsche Telekom acquired SBC's 50% stake in MagyarCom. As a result of the change in the ownership structure of MagyarCom, Deutsche Telekom's ownership in Matáv increased to 59.52%, the remaining 40.48% public shareholding, while the golden share was owned by Hungary.[4]
Internationalization
Since 2001, it was possible for Matáv to become an international telecommunications group. The consortium led by Matáv acquired a majority stake in Macedonia's national telecommunications company Makedonski Telekomunikacii (MakTel), which became a consolidated subsidiary of the group.[4] As a further step, Matáv acquired the remaining 50% stake in Emitel Rt.
The group's companies took leading positions in the mobile phone, internet and business data communications markets, with a share of over 80% in the fixed phone market.[citation needed]
A new governance structure of the group was adopted at the end of 2001.[4] As of January 2002, a new corporate structure was introduced, where four business areas were the basis for the operation: retail services, business solutions, Internet, and mobile.
Rebranding
In 2002, the Matáv Group obtained group-level certification in accordance with ISO 9001:2000, certified by SGS S.A.[4]
Matáv also wanted to lead telecommunications and Internet services in Hungary, as evidenced by the 100,000th ADSL subscription acquired in December 2003. In mobile telephones, number portability was a minor difficulty, but the Westel division of the group solved the problem in 2004.[4]
In March 2004, the group decided to replace the Westel name, which had existed since 1989, and joined the global T-Mobile brand on 1 May 2004. Subsequently, the Matáv Group decided to consolidate and merge, subordinating the structure of the group of companies on 1 January 2005, and then on 6 May all its services and operational organizations under central management and the group of companies. It changed its company name, and from that date, the Magyar Telekom Group operated as a group of "T" brand names.[5]
On 8 November 2005, Magyar Telekom agreed to purchase Orbitel (Bulgaria's telecommunications provider), a transaction that ended on 3 February 2006.[6]
The merge caused T-Mobile Magyarország Rt. and Magyar Telekom Rt. to stop existing,[7] and András Sugár, CEO of T-Mobile, resigned. At the same time, Magyar Telekom Távközlési Nyilvánosan Működő Részvénytársaság took over their role from 1 March 2006.[4]
Leaving the New York Stock Exchange
In order to simplify the structure of financial reporting and reduce administrative costs, Magyar Telekom withdrew from the New York Stock Exchange on 12 November 2010, while continuing its listing on the Budapest Stock Exchange.[8]
4G technology in Hungary
On 1 January 2012, Telekom was the first telecommunications company in Hungary to launch its 4G/LTE-based mobile Internet service, which provided full outdoor 4G coverage of Budapest and 4G mobile internet to almost 27% of the country's population.[9]
2016
In February Magyar Telekom's Board of Directors decided to renew the mandate of Christopher Mattheisen as CEO until May 31, 2019.
After nearly 20 years of cooperation Magyar Telekom became the name sponsor of the Veszprém handball team. According to the agreement from the 2016/2017 championship season the teams of the Veszprém Handball Team Zrt., from the U10 age group to the adult team, will be called as Telekom Veszprém Handball Team in all domestic and international championships.
As a result of the first and second rounds (Western and Eastern Hungary) of the tender for the national development of digital networks Magyar Telekom and its consolidated subsidiaries were granted 12.2 billion HUF EU funds at group level for the development of fixed networks operating at the speed of at least at 30 Mbps in 46 districts.
On November 15 the foundation stone of the new Magyar Telekom headquarters, owned and built by WING Zrt. and as the company's investment, was laid in a ceremony at Könyves Kálmán körút in Budapest.
The outdoor residential coverage of Telekom's 4G network increases to 98% by the end of the year while the indoor coverage is at 87.2%. The 4G+ service, with a theoretical speed of 300 Mbps, was already available in more than 40 localities, reaching almost 25% of the population. In 2016 the company's 4G customer base grew by 44%, reaching nearly 1.4 million by the end of the year and 70% of mobile data traffic was using the 4G network.
2017
From January 11, 2017 Tibor Rékasi was appointed as Magyar Telekom's Chief Residential Commercial Officer. On April 1, 2017 Dr. Kim Kyllesbech Larsen became Magyar Telekom's Chief Technical and IT Officer, and on May 15 Zsuzsanna Friedl became Chief People Officer. Dr. Robert Hauber, Deutsche Telekom’s Senior Vice President Finance Europe, was appointed as Chairman of Magyar Telekom's Board of Directors.
Magyar Telekom signed a share sale agreement with Hrvatski Telekom d.d. to transfer its majority stake in Crnogorski Telekom. As a result of the transaction Magyar Telekom acquired a majority stake (76.53%) in Crnogorski AD. In Podgorica it was transferred to Hrvatski Telekom d.d. for a total of 123.5 million EUR.
Magyar Telekom was the first mobile operator in Hungary to launch voice services on the 4G network. The 4G Voice service has the advantage of providing an uninterrupted 4G data connection even during calls.
In line with the EU regulations from June 15, 2017 Telekom customers could make calls, send SMS messages and use the internet within the EU at the same prices as their domestic tariff plan, without EU roaming surcharges, provided they comply with fair usage conditions.
Telekom introduced a 2000 Mbps (=2Gbps) home internet plan in its fibre optic areas, which doubles the maximum available bandwidth when several devices are connected to the internet at the same time, for example for family use.
Ericsson and Telekom launched the first 5G connection in Hungary with a download speed of 22 Gbps.
Magyar Telekom started to build a 5G test network at the automotive test track in Zalaegerszeg.
Magyar Telekom Group closed its third carbon neutral year: the operator successfully reduced its carbon dioxide emissions, while offsetting its remaining carbon emissions by supporting green projects.
2018
Christopher Mattheisen, CEO, resigned from Magyar Telekom as of July 1, 2018. The new CEO of the Company became Tibor Rékasi. From July 1, 2018 Melinda Szabó became Magyar Telekom's Chief Residential Commercial Officer.
Telekom was the first company in the Hungarian market to enable the use of SIM cards (eSIM) on its network. The operator also introduced MultiSIM, which allows customers to use both mobile internet and voice services on multiple SIMs with a single subscription. MultiSIM supports both traditional SIM and eSIM cards.
Based on the decision of the National Media and Info-communications Authority Magyar Telekom's frequency usage right in the 2100 MHz frequency band, which was effective until December 27, 2019, was extended until June 27, 2027.
Magyar Telekom was the first in Hungary to present a 5G network operating under real conditions at its headquarters in Krisztina körút, Budapest.
Telekom's call center replaced the traditional push-button menu system with a virtual business assistant. The artificial intelligence-based, Hungarian-speaking VANDA receives incoming calls, understands the customer's intentions and routes the call to a competent expert as quickly as possible. It also performs routine tasks that are highly automatable and occur frequently.
According to GKI Digital's market analysis Magyar Telekom was the largest mobile handset and tablet supplier in the Hungarian online retail market in 2018.
Ferencváros Sports Club and Magyar Telekom signed a new four-year agreement under which the companys support not only men's but also women's football teams, as well as water polo, ice hockey and men's gymnastics.
Between 2014 and 2018 the company spent nearly 240 billion HUF in Hungary to develop the infrastructure of its fixed and mobile networks.
2019
At the end of January Magyar Telekom launched its first standard 5G station in the center of Zalaegerszeg. The gigabit speed test network was implemented as a standard 5G system and was using commercially mature 5G network equipment.
Magyar Telekom extended its sponsorship contract with the Telekom Veszprém men's handball team. According to the agreement Telekom continued to support the adult and junior teams for another three years, until the end of the 2021/2022 championship season.
On October 1, 2019 Lubor Zatko was appointed as Chief Technical and IT Officer of Magyar Telekom.
Magyar Telekom and T-Systems moved to their new new headquarters in Könyves Kálmán körút in Budapest. The country's largest office building has since won several prestigious architectural and property development awards.
Magyar Telekom's intensive network development continued in 2019 as a result the operator offered more than 1.7 million gigabit speed access points on its fibre and cable networks in September.
Magyar Telekom started the transition to an agile way of working in 2019. The aim of the corporate-level agile transformation was to respond more quickly and effectively to customer needs and the changing market environment.
2020
On March 1, 2020 Darja Dodonova, former Vice president of Europe segment Technology Controlling at Deutsche Telekom, was appointed Chief Financial Officer of Magyar Telekom.
Magyar Telekom's Board of Directors decided to extend Tibor Rékasi's contract as CEO for another 3 years, until June 30, 2024. On November 2, 2020 Gábor Gonda became CEO of T-Systems Hungary Zrt. and a member of Magyar Telekom's senior management.
Magyar Telekom was successful in the auction for frequency usage rights for 5G and mobile broadband services and launched its commercial 5G service in April. By the end of August the service reached another milestone with dozens of new stations connected in 23 municipalities - Budapest, Budaörs, Zalaegerszeg, Debrecen, Kecskemét, Szeged and parts of Szombathely, as well as in 16 localities around Lake Balaton.
Magyar Telekom continued to intensively develop its gigabit network in 2020: 377 thousand new fibre access points and 117 thousand cable access points were upgraded to gigabit capable. This resulted in the total number of gigabit connections of nearly 2.5 million.
2021
Magyar Telekom Group was given the Disability Friendly Workplace Gold Award for its achievements and efforts in promoting the employment of employees with disabilities, the development of an accessible workplace environment and an inclusive corporate culture.
Magyar Telekom acquired frequency usage rights in the auction for the 900 MHz and 1800 MHz frequency bands.
Based on the company's 2020 sustainability results Magyar Telekom was nominated among the best performing companies in the telecommunications sector by ISS Corporate Solutions.
Based on PwC Hungary's annual research Magyar Telekom won the Most Attractive Workplace Award in the telecom sector for the fourth year in a row in 2021.
Magyar Telekom continued to intensively develop its gigabit network in 2021: 401 thousand new fibre access points were added to its network, and 40 thousand cable access points were upgraded to gigabit capability. The company offered gigabit speed to more than 3 million homes and businesses.
Magyar Telekom launched its fifth sustainability strategy cycle, which sets sustainability targets until 2030. The key idea of the strategy is to make Magyar Telekom Group the leading sustainable company in Hungary, giving digitalization at the service of the development of people, families and businesses as well as the protection of the environment.
2022
In 2021 - for the fourth year in a row - Magyar Telekom's webstore was again the largest supplier of mobile phones and tablets among Hungarian language webstores. According to a market analysis by GKID (formerly GKI Digital) Telekom has a 2.3% share of the total online retail market, making the company the fifth largest online player in Hungary.
Randstad Employer Brand Research is the most comprehensive independent employer brand research in the world. As a result of the survey Magyar Telekom was awarded the Nívó prize, as it won the Most Attractive Workplace in the Telecom Sector award for the fourth year in a row.
Magyar Telekom signed an agreement to support the Ferencváros Sports Club for another four years. Within the framework of the cooperation Telekom remains the main sponsor of Ferencvárosi Torna Club, the sponsor of FTC football team, and the name sponsor of the water polo, ice hockey, women's football and men's gymnastics club divisions.
Magyar Telekom extended its sponsorship contract with the Telekom Veszprém men's handball team. According to the agreement Telekom continues to support the men's adult and junior teams of the Veszprém club for another four years, until the end of the 2025/2026 championship season.
Magyar Telekom switched off its 3G network which will no longer be available in Hungary after July 1, 2022. The operator decided to disconnect the network due to low utilization. Customers will obviously not be left without service: the 4G network will continue to be available for both voice and data, with near nationwide coverage and a better customer experience than previous technologies. Customers with 3G handsets or less will have their voice traffic taken over by the existing 2G network.
Controversies
In July 2017, T-Systems Hungary, a subsidiary of Magyar Telekom, launched an online ticket service for BKK, the unified transport operator of Budapest, Hungary. The application allegedly contained multiple security bugs. T-Systems Hungary reported online attacks on the application to the local authorities. One major bug was reported to BKK by an 18-year-old student, who was later detained by the police in the middle of the night, causing a public outcry, as it was revealed that the detention was ordered after the report by T-Systems. Many comments and negative ratings were added to T-Systems and BKK's social media pages.[10][11][12]
References
- ^ "Ownership structure - Telekom". Telekom Mobilszolgáltatás (in Hungarian). Retrieved 28 July 2022.
- ^ "Cégtörténet – Magyar Telekom csoport". Telekom Mobilszolgáltatás (in Hungarian). Retrieved 23 June 2020.
- ^ Linking privatization and regulatory reform (PDF). David M. Eisenberg, Partner, White & Case*.
- ^ a b c d e f g "Magyar Telekom". magyarbrands.hu. Retrieved 23 June 2020.
- ^ Reading 5 April 2005, News Wire Feed Light. "Hungary's Matav Changes Name". Light Reading. Retrieved 23 June 2020.
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ "Magyar Telekom". 8 December 2008. Archived from the original on 8 December 2008. Retrieved 23 June 2022.
- ^ Closed shop? The Hungarian Telecommunication Service Market 2006/2007 (PDF). Goetzpartners and Consolidus.
- ^ Martin, Roderick (1 January 2010). "Transferring Corporate Governance Codes: Form or Substance? Corporate Governance in Hungary". Europe-Asia Studies. 62 (1): 145–171. doi:10.1080/09668130903385440. ISSN 0966-8136. S2CID 153379764.
- ^ "T-Mobile Hungary deploying 4G/LTE services with Cisco mobile internet solution". www.commsupdate.com. Retrieved 24 June 2020.
- ^ Márai, László (24 July 2017). "18 year old guy arrested for reporting a shamefully stupid bug in the new Budapest e-Ticket system".
- ^ "Éjjel elvitték a rendőrök a BKK e-jegyének hibáit feltáró fiatalt".
- ^ Péter, Magyari (21 July 2017). "Éjszaka elvitték a rendőrök a 18 éves fiút, aki szólni merészelt a BKK-nak, hogy szar a webjegye". 444.
External links
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