EASTERN AND CENTRAL EUROPE
Hungary
Our wholly-owned subsidiary Pannon is the second largest mobile operator in Hungary based on the number of subscriptions.
Pannon offers voice and non-voice services to subscribers on both prepaid and contract basis.
GSM and UMTS licenses
Pannon currently holds two GSM licenses (GSM 900 and GSM 1800) and a UMTS license, awarded in December 2004, which has a 15 year-duration. The license has an extension option for an additional 7.5 years.
Refreshed brand
Pannon has made significant investments in establishing its brand name and in positioning itself as a provider of high-quality services with up-to-date features, competitive pricing and good customer service. During 2006, Pannon refreshed its brand, introducing a new logo and colours, a new tone of voice, creative platform and it has also rebranded customer touch points such as distribution, customer service, invoice design, and product portfolio. However, Pannon has maintained the djuice brand for the youth segment after the refreshment of the Pannon brand.
Retail and “flagship” stores
In addition to the Pannon-owned regional service centres, Pannon sells its products through a nationwide network of Pannon branded agents and outlets on an exclusive basis. During 2006, Pannon restructured its distribution channels by outsourcing its own shops to various franchisees, while keeping six shops as “flagship” stores. Pannon also has a direct sales force for major accounts and sales to small and medium-sized enterprises.
| Pannon | 2004 | 2005 | 2006 |
|---|---|---|---|
| No. of mobile susbscriptions (in millions) | 2.77 | 2.93 | 3.15 |
| - of witch prepaid | 1.99 | 1.90 | 1.96 |
| Av. traffic min. per subscription per month (AMPU) | 123 | 141 | 155 |
| Av. revenue per subscription per month (ARPU) | 173 | 162 | 152 |
| EBITDA/Total revenues (%) | 35.5 | 36.1 | 37.1 |
| Operating profit/Total revenues (%) | 13.2 | 16.6 | 17.9 |
| Capex | 1166 | 763 | 619 |
| Market share GSM (%) | 34 | ||
| Mobile penetration (%) | 80 | 87 | 94 |
> Regulatory matters
> Further discussion and analysis
Market data
Hungary- Population (2006, in million): 10.0
- Land area (sq KM): 92,340
- Population per sq KM: 107
- Population growth (%) av.2002-2006: -0.3
- GDP per head (US$): 11,220
- GDP per head (US$) purchasing power parity: 18,175
- Real GDP growth (%) av. 2002-2006: 4.3
- Inflation (%) av.2002-2006: 4.8
Market share 2006
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Total Mobile Market
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