November 21, 2012 | Tim Johnson
One of the European Union’s most ambitious targets is to make sure that all its citizens can get access to superfast broadband at home, if they choose, by 2020. A new study by broadband specialists Point Topic shows Hungary is now 54% towards achieving that aim. This means that 54% of Hungarian homes can subscribe to superfast broadband services delivering at least 30Mbps (megabits per second) of bandwidth.
Now Hungary is in a good position to increase superfast coverage to 70% and beyond because its existing networks are not yet being exploited to the full. Although the basic cable TV network passes 62% of the homes in Hungary only 47% of homes can yet receive superfast cable broadband using the Docsis 3 technology. Equally DSL, the technology for delivering broadband over the telephone network, is available to 89% of the homes in Hungary but VDSL – the superfast alternative to DSL – is on offer to less than 3%. Upgrading these two existing networks could give Hungary much improved superfast coverage at relatively low cost.
The report which reveals the opportunity in Hungary has been produced for DG Connect, the department of the European Commission which is responsible for its “Digital Agenda” strategy. The purpose of the Digital Agenda is to harness the internet and other digital technologies to drive sustainable economic growth. Neelie Kroes, the Commission vice-president responsible, wants to see €7 billion earmarked for EU investments in broadband to help reach Digital Agenda targets, which in turn is meant to draw in private funds of many times that amount.
“This study gives us the best view so far of where action is needed on broadband coverage,” says Neelie Kroes. “It will help to guide decisions on where EU and private money can be invested to provide the best long-term return for taxpayers and investors such as pension funds.”
Called Broadband Coverage in Europe in 2011, the new study shows that 93% of the homes in Hungary can now get basic broadband, meaning services offering at least 144kbps (kilobits per second), if they want to subscribe. Some 54% can already get superfast broadband, also known as NGA, for Next Generation Access. Looking at the 29 study countries as a whole (all 27 members of the EU, plus Norway and Iceland), 96% can already get basic broadband and over 50% – half way to the aim for 2020 – can get superfast.
Basic broadband is fairly widespread now, only three EU countries have less than 90% coverage. But there are huge variations in superfast availability both internationally and within countries. As far as Hungary is concerned, the map shows that Budapest, the capital, Pecs, one of Hungary’s biggest cities, and the region of Tolna, north of Pecs, have high coverage, with 90%, 78% and 97% respectively. The rest of the country ranges down from 61% to 24%. This is good by comparison with Europe as a whole, where rural areas have much lower coverage of superfast broadband than the towns and suburbs, only 12% on average.
The study also shows how competing technologies are sharing out the superfast broadband market as illustrated on the chart. In Hungary, Docsis 3 is the most important superfast technology with 47% coverage. This is ahead of Europe as a whole where Docsis 3 also leads on 37%. FTTP (fibre-to-the-premises, meaning to apartment blocks or individual homes) is also well ahead, reaching 24% of Hungarian homes against a 12% average for the EU%. But VDSL is behind, with only 3% reach in Hungary compared with the European average of 21%.
“When we add all these technologies together we have to take account of the overlap,” explains Tim Johnson, who led the project as Point Topic’s Chief Analyst. “This is how we get to superfast coverage of 54% in Hungary.” The problem is that the superfast operators compete to serve the richer and more densely populated areas in each country, leaving others underserved. “Hopefully this project will give policy-makers some of the information they need to start addressing that problem,” says Johnson.
Key to technologies
DSL – provides broadband speeds up to 24 megabits per second over the telephone network
VDSL (Very-fast DSL) – provides superfast speeds (30Mbps or more) over the telephone network
FTTP (fibre-to-the-premises) – delivers the fastest possible broadband over optical fibre to apartment blocks or all the way to individual homes
WiMAX – the up-to-date standard for broadband over wireless links to fixed aerials
Standard cable – provides broadband over cable TV networks using older standards
Docsis 3 cable – the up-to-date standard for providing superfast broadband over cable TV networks
HSPA – the up-to-date standard for mobile broadband over 3G networks
LTE – the new standard for fourth-generation (4G) mobile broadband
Satellite – two-way broadband delivered over the newest satellites using KA-Band technology
Standard combination – shows the combined coverage of all the fixed-line broadband technologies
NGA combination – shows the combined c overage of all the fixed-line superfast broadband technologies (VDSL, FTTP and Docsis 3)
About Point Topic
Point Topic is the primary websource for DSL, FTTx, cable and other broadband supplier and user statistics, databases, information and reports. Its data is in use worldwide amongst governments, commercial organisations and as general reference. A range of online services provides the most up-to-date, accurate and cost effective worldwide and UK specific broadband data sets available.