Broadband tender endangers market players

Analysis

On the initiative of Hungarian Cable Communication Alliance (MKSz), the Economy and Transport Ministry promised to investigate the Ft 10.5 billion tender aiming to get broadband internet connection in towns where deploying the infrastructure is not profitable for market players, business daily Világgazdaság reported.
The tender gives way to parallel cable networks, said MKSz chairman Ferenc Kéry, listing some municipalities who plan to build their own infrastructures though there are networks already operating or being developed. Also, while municipalities will get a 75% subsidy, market players get only 41% through a different subsidy channel. The cable systems can also be used for providing cheap television or online telephone services, added Kéry.

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