NHH to make fixed line contracts ‘fairer’

17 Sep 2007

The Hungarian telecoms regulator, the National Telecommunications Authority (NHH), has introduced new regulations governing the landline market, making it easier for subscribers either to switch service provider before their loyalty contract expires or cancel these contracts altogether. NHH President Daniel Pataki says the move marks a major step towards forcing fairer loyalty contracts in the domestic fixed line market, and comes after it reviewed the general contract conditions offered by service providers, some of which it deemed to be in breach of the law. Under the NHH’s new rules, service providers will not be able to set up loyalty contracts which limit customers’ freedom of choice. Furthermore, operators which are deemed to enjoy significant market power (SMP) – such as Emitel, Hungarotel, Invitel, Monortel and Magyar Telekom’s T-Com – are not allowed to raise monthly subscription fees by more than the annual inflation rate.