Hungary's 04 Mobile Phone Penetration Rate 86.4% Vs 78.5%

BUDAPEST -(Dow Jones)- Mobile phone use in Hungary expanded further last year, nearing saturation levels, amid fierce competition by service providers, data from the Hungarian telecommunications authority, or NHH, showed Monday.

The mobile telephone penetration rate, or the number of subscribers per 100 people, rose to 86.4% by the end of 2004 from 78.5% in December 2003. The number of active subscribers rose 9.9% to 8.73 million from 7.94 million.

Market share by subscriber numbers show that market-leader T-Mobile defended its position while its market share eroded to 46.2% from 47.4%. Pannon GSM also lost subscribers as its market share shrank to 33.9% from 35.8%. But Vodafone gained, with its share of the market climbing to 19.9% from 16.8%.

Market share figures by the incoming and outgoing traffic reflect similar gains and losses. T-Mobile's share of the traffic fell to 41% from 42.5%, Pannon's to 35% from 36.4% while Vodafone's increased to 23.9% from 21.1%.

T-Mobile Rt. is fully owned by Hungary's largest telecom company, Magyar Tavkozlesi Rt. (MTA), or Matav. Matav is majority owned by Deutsche Telekom AG (DT). Pannon GSM Rt. is 100% owned by Norway's Telenor ASA (TELN). Vodafone is fully owned by U.K. mobile operator Vodafone Group PLC (VOD).

Telecom authority Web site: http://www.nhh.hu

-By Margit Feher, Dow Jones Newswires; +361-267-0622; margit.feher@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 31st January 2005