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Internet subscriptions up 19% yr/yr in 2010

There were more than 3.3m internet subscriptions in Hungary at the end of December 2010, up 5.8% in three months and up 19.2% or 537,325 from the end of 2009, the Central Statistical Office (KSH) reported on Monday. The rise slowed only moderately from a 21.3% increase in 2009.

Approximately half of all the subscriptions were for broadband internet. Their share fell 2.0 percentage points in three months and fell 6.0 percentage points from a year earlier as mobile internet subscriptions expanded. 39.1% of all subscriptions were for mobile internet at the end of last December, their share rose 1.9 percentage points from the end of September and was up 6.0 percentage points in one year.

Wireless internet subscriptions rose 10.2% in three months and 35.6% in twelve months to 1,405,663 at the end of December 2010 after a 52.9% rise in 2009. The rise came from mobile internet subscriptions which were up 11.2% in Q3 and rose 40.1% in one year to 1,306,912.

Within the broadband internet segment, the number of cable subscriptions rose 2.6% in the fourth quarter and rose 14.5% in twelve months to 895,876, while the number of xDSL subscriptions were up 0.8% in three months and fell 1.5% yr/yr to 787,959. xDSL subscriptions rose on the quarter for the first time since a slight 0.1% increase in Q1 2009.

Cable subscriptions rose more than their 9.0% rise in 2009, and the number of xDSL subscriptions fell slightly more last year than their 0.8% decline in 2009.

Internet service providers (ISP) had revenue of HUF 34.01 billion in Q4 2010, up 0.1% from the previous quarter, but down 2.6% yr/yr. The rise was the third quarter-on-quarter rise in a row and the third rise posted since Q4 2008.

Internet service providers' revenue in the entire 2010 amounted to HUF 135.3 billion, down 4.6% from 2009. Revenue was flat at HUF 141.87 billion in 2009 in a sharp contrast with a 25.9% increase in 2008.

There were 393 ISPs in Hungary at the end of December 2010, up 36 in one year. The concentration of the market is high, with 18 ISPs accounting for 90% of all subscriptions.