As the Hungarian telephone company Matáv prepares
to raise Internet access rates, a
group of concerned Internet users is protesting. This group
considers Matáv's actions to be monopolistic and detrimental to
the growth of the Internet in Hungary — where Internet access is
already more expensive than almost anywhere else in the world.
Matáv previously charged no more than HUF 150 (about US$0.58) per local
telephone call between the hours of 6pm and 6am, and offered a
"Mindenkinek" package allowing unlimited calls at night for HUF 4000
(US$15.45) per month. However, effective July 1, these plans will no
longer be offered, and all off-peak calls will cost HUF 4.50 (US$0.02)
per minute.
Approximately 1200 concerned citizens held a
demonstration last Tuesday to protest the changes. A related rally
was able to block similar changes last year; however, organizers fear
that they will not be as successful in Hungary's newly deregulated
telecommunications market. Matáv claims that it is no longer able
to afford to offer the discount rate plans, but organizers dispute
this and point out that Matáv (which is owned by Deutsche
Telekom) is currently making a
profit of some HUF 20 billion (US$77 million) per quarter.
What is happening in Hungary seems to be similar to what happened last
year with California's energy prices: large corporations are taking
advantage of newly deregulated markets to increase their profits at
consumers' expense. The power and utility of the Internet are
growing — despite the low rate of Internet usage in Hungary,
there has already been at least
one successful boycott coordinated over the Internet. It is truly
unfortunate, then, that Matáv will be making the Internet even
less accessible to its customers.