Chris Dziadul Analysis: Hungary's 4iG expansion continues

Budapest-based 4iG is about to strengthen its position in the Hungarian electronic communications market still further. This follows the news that it has agreed to buy, through its subsidiary Antenna Hungária, the regional telco PR-Telecom for an undisclosed fee.

PR-Telecom is a long-standing player in the Hungarian market, with a presence dating back 25 years. Wholly Hungarian owned, it provides cable TV, internet and telephony services in 10 counties and more than 200 settlements across the country, with its 3,400km-long network serving 250,000 households and 55,000 subscribers.

The transaction, which requires regulatory approval from the Hungarian Competition Authority (GVH) and is expected to close in the fourth quarter of this year, marks the latest stage in the remarkable rise of 4iG in the last few years. Now describing itself as a converged service provider, it has undertaken a number of high-profile acquisitions in its home market including Digi Communications’ Hungarian assets and Vodafone Hungary. Elsewhere, it has established a strong presence in Albania, where it merged its subsidiaries ALBtelecom and One Albania into a single company using the brand name ONE, and Montenegro through its subsidiary ONE Crna Gora.

Alongside this 4iG has bought into the Israeli satellite operator Spacecom with a view to eventually owning a majority (51%) stake in the company. At the beginning of this month it also signed an MoU with Telecom Egypt to establish a joint venture that will build, operate and commercialise a state-own the-art fibre network that will serve at last six million households across the country. Total investment in the project is expected to be around $600 million over the next 10 years.

Looking to the future, one of 4iG’s objectives is to establish a space technology centre planned by the technology development company REMRED, in which it is currently in the process of acquiring a 45% stake. This is expected to be fully operational in 2026 and according to 4iG make it “a unique player in the Central and Eastern European market”.

 

 

© Chris Dziadul, 2024