Technology, Communications and Media: Hungary

Euromonitor International 19 June 2013

Despite austerity measures on the back of high public debt and weak economic growth that have impacted the domestic telecom landscape, Hungary has maintained gradual expansion in the sector and remains attractive to external investors. High mobile phone penetration and broadband Internet subscriber rates that are above the regional average are the primary drivers behind sector growth, with FTTH and 4G LTE set to be the focus of infrastructural investments going forward.

EXECUTIVE SUMMARY
The share of mobile telecom revenues in total telecom revenues has increased in Hungary, with the 2007 level of 39.6% having increased strongly to 51.8% in 2012. Mobile telephony remains the most dominant telecom segment in the country; The Hungarian smartphone market by retail value is projected to reach US$417 million in 2012, which would amount to a surging 952% real-term gain over 2008, the earliest date figures are available. The rapid growth of the smartphone market has been aided by intense pricing competition between operators, with budget deals allowing more Hungarians to obtain the web-ready handheld device; Household possession of a broadband enabled computer reached 65.3% in 2012, with a surging expansion from 33.0% in 2007. In 2012, Hungarys broadband penetration rate placed it in 28th place out of 85 countries, above Slovakia and Lithuania but below Slovenia and the Czech Republic; Some 55.0% of homes had cable TV in 2012, decreasing from 57.0% in 2007. Satellite TV is rarer among homes and tends to be more expensive, but the segment has expanded strongly on the back of greater offerings and wider coverage, with possession at 27.8% of households in 2012, having risen strongly from 19.2% in 2007; 92.9% of Hungarian businesses used a computer in 2012, which was an increase from 91.4% in 2007. Business Internet use has seen strong growth, rising from 86.4% to 90.0% over the same period, with 84.4% of businesses using fixed broadband in 2012. Hungary is one of the most progressive nations in Eastern Europe when it comes to business IT usage; Social media is one of the most popular online activities in Hungary, with the social network Facebook the most popular website in the country by hits as of June 2013 according to Alexa. Facebook also has extremely high penetration in the country, at almost half of the entire population according to Socialbakers at the same time, which has been a strong driving force behind the online adspend segment.
Chart 1 Total Telecommunications Revenues in 2012 Regional Overview

US$ million

Source:

Euromonitor International from national statistics

MARKET OVERVIEW
One of the stronger markets in the region beset by economic underperformance
An influx of early foreign investments at the turn of the century and EU funding has helped make Hungary one of the stronger telecom markets in Eastern Europe, with international players dominating the local telecom scene. However, rising public debt and the double impact of the global economic downturn of 2008-2009 and the eurozone sovereign debt crisis have forced the country into severe austerity measures, which have an impact on telecom consumer purchasing power and tax rates for telecom firms. Nonetheless, as many industries in the country are experiencing stagnation the telecom sector is one of the few that continues to expand. Hungary ranked 44th in the World Economic Forum (WEFs) Networked Readiness Index (NRI) in 2013 out of 144 nations, declining slightly from 43rd in the 2012 NRI out of 142 nations. In Eastern Europe, Hungary is only behind a handful of advanced Baltic states, as well as Slovenia and the Czech Republic, which makes the country one of the top telecom performers in the region. However, cuts in public and private telecom investments due to a poor economic climate undermine its position in the future. Telecom revenues see a large drop while investments are gradually recovering: Overall capital investment in telecommunications stood at HuF103 billion (US$460 million) in 2012, declining by 9.4% in real terms over the period 2007-2012, one of the milder drops in the region. Investments in the sector have held up quite well considering the poor economic environment in Hungary, although this is largely due to large expansion in the pre-crisis years of 2008 and 2009; Capital investment saw an annual real fall of 13.9% in 2012, with the indicator beginning to recover its footing following large declines throughout the 2010-2011 period. Consumer frugality and fewer public assistance programmes for commercial operations have held back investments;

In terms of total telecommunications revenues, Hungary posted HuF819 billion (US$3.6 billion) in 2012, having seen period decline of 39.4% in real terms over 2007-2012. This large drop has largely come about as a result of consumers reining in their spending levels due to high unemployment levels and a poor economic outlook; 2012 saw an annual real fall in telecom revenues, with a decrease of 8.6%. Over the entire 2007-2012 period, every year saw an annual real decline in telecom revenues. Market maturity and the growing saturation of telecom services are also factors that are pegging back the initially high revenues of telecom operators.
Chart 2 US$ million Capital Investment in Telecommunications and Telecommunications Revenues 2007-2012

Source:

Euromonitor International from national statistics/trade sources/OECD/Eurostat

PHYSICAL INFRASTRUCTURE
Providers focusing on FTTH and bundled services
Strong EU support and large public investments have helped develop strong information and communications technology (ICT) infrastructure across Hungary, with access to high-speed data networks comparable to that of Western European nations. Cable and DSL platforms remain the primary connection platforms for broadband Internet, although Fibre-to-the-Home (FTTH), which offers higher speeds and more stable bandwidth, has been the fastest growing segment in fixed broadband in 2012. According to trade sources, by the end of 2013 there are expected to be around 350,000 FTTH subscribers. Landlines contract in line with regional standards: The number of telephone lines in use in Hungary stood at 2.9 million in 2012, having contracted by 11.4% over 2007, which is roughly in line with the Eastern European trend over the same period. The availability of wireless telecom services is allowing more homes to drop unnecessary landlines; Household possession of a mobile phone has continued to expand as landlines are contracting, rising from 86.4% in 2007 to 95.7% in 2012. The availability of digital main lines has remained at 100% throughout 20072012. Although Hungary has made great telecom development progress in urban areas, rural zones continue to be hampered by poor fixed infrastructure. The arrival of 4G LTE in 2012 has been vital in providing greater Internet access to areas that remain commercially unattractive for fixed services, and more rural households are expected to cross the digital divide throughout 2013-2014. Cable providers are also increasingly focusing on the provision of bundled packages by upgrading their existing infrastructure so that they can offer pay-TV and other data-based services.
Chart 3 Telephone Lines in Use 2007-2012

000

Source:

Euromonitor International from International Telecommunications Union (ITU)

MOBILE CONNECTIVITY
Surging growth in smartphone market
The Hungarian mobile market has a competitive landscape with three operators leading an aggressive pricing policy to win new subscribers in an increasingly oversaturated sector. According to the National Communications Authority of Hungary, T-Mobile is the market leader with a 45.6% share of total mobile subscribers in mid-2012, followed by Telenor 31.9% and Vodafone on 22.6%. In early 2012, Tesco Mobile became the countrys first virtual network service provider and this segment of the market is expected to grow going forward. Mild growth in new subscribers in a highly saturated mobile market: Hungarys mobile phone penetration has increased over 2007 -2012 to reach 95.7% of households, one of the highest rates in Eastern Europe. With rural homes joining the mobile telephony bandwagon, especially due to the availability of mobile broadband that acts as a replacement of fixed broadband that is unavailable in some regions, there are few non-connected consumers in the country; Hungarys mobile phone subscriptions stood at 11.9 million in 20 12, having seen a mild increase of 7.8% over 2007. High saturation levels are preventing strong growth in subscriptions, with operators increasingly relying on marketing additional services to existing subscribers; The share of mobile telecom revenues in total telecom revenues has increased in Hungary, with the 2007 level of 39.6% having increased strongly to 51.8% in 2012. Mobile telephony remains the most dominant telecom segment in the country.
Chart 4 Proportion of Mobile Revenues in Total Telecom Revenues and Household Possession of Mobile Telephone 2007-2012

% of telecom revenues, % of households

Source:

Euromonitor International from International Telecommunications Union, World Bank, trade sources and national statistics

The Hungarian smartphone market by retail value is projected to reach US$417 million in 2012, which would amount to a surging 952% real-term gain over 2008, the earliest date figures are available. The rapid growth of the smartphone market has been aided by intense pricing competition between operators, with budget deals allowing more Hungarians to obtain the web-ready handheld device. T-Mobile was the first operator to launch 4G LTE services in the country in 2012, with this being one of the earliest launches of the high-speed broadband technology in Eastern Europe. By the end of 2013, all remaining operators are expected to offer commercial 4G services. Mobile phone ownership to reach almost blanket coverage: Mobile phone subscriptions are projected to expand by 4.2% over 2013-2020 to reach a total of 12.5 million, with this low growth rate largely in line with the regional average. As only a handful of Hungarian consumers are expected to remain without a mobile phone by 2020, operators will focus on the provision of mobile broadband and associated services such as mobile money transfers, entertainment and other m-commerce-based segments; Mobile phone possession is set to reach 98.6% of all households by 2020, which would make Hungary one of the most penetrated mobile phone markets in Eastern Europe. This will come as welcome news for m-commerce businesses as they will be able to gain access to almost all of the countrys households.
Chart 5 US$ million Smartphone Retail Market Value 2008-2012

Source: Note:

Euromonitor International from trade sources and national statistics Data for 2012 is forecast; figures in 2011 constant terms

HOME CONNECTIVITY
Satellite TV sees strong expansion
The Hungarian fixed broadband market is developing rapidly with a focus on FTTH infrastructure, as consumer demand for bandwidth and speed is driving investments by providers. The local sector is dominated by UPC Hungary and Maygar Telecom, with both investing heavily in infrastructure as mobile broadband increasingly threatens to challenge the fixed segment for new subscribers. However, austerity measures and the slashing of EU funding for digital goals has meant that national programmes for the development of fixed broadband into rural areas and for low-income homes have been downgraded significantly. Broadband dominates the fixed telecom landscape: In 2012, Hungarys fixed total Internet subscribers amounted to 2.4 million, of which all were broadband subscribers, with dial-up non-existent on the local market, which underlines the progressive nature of the Hungarian telecom sector; Broadband subscribers expanded by a strong 71.8% over 2007-2012, as total Internet subscribers grew by 64.3% over the same period. The rapid decline in dial-up users, at 99.8% over the same period, ensured that dial-up disappeared as a technology; Household possession of a broadband enabled computer reached 65.3% in 2012, with a surging expansion from 33.0% in 2007. In 2012, Hungarys broadband penetration rate placed it in 28th place out of 85 countries, above Slovakia and Lithuania but below Slovenia and the Czech Republic. As broadband subscribers continue to increase in size the domestic market will open up more to high-level web services: Broadband Internet subscribers are set to reach 2.9 million by 2020, seeing growth of 18.1% over 2013-2020. Expansion into rural areas and the offering of high-speed FTTH services are set to boost subscriber take-up ; Possession of a broadband enabled PC will reach 82.2% of households by 2020, as Hungary continues to be one of the strongest markets in Eastern Europe for broadband penetration. The growing access to high-speed services will ensure that local consumers use more digital and social media, opening up the market to greater bandwidth-dependent services.
Chart 6 % of households Household Possession of Broadband Internet Enabled Computer and Telephone 2007-2020

Source: Note:

Euromonitor International from trade sources and national statistics Data for 2013-2020 refer to forecasts

According to the 2011 ICT Price Basket, which measures the prices of telecom services as a percentage of GNI per capita, Hungary ranked 60th out of 161 nations in terms of the affordability of local services, which was around the

mid-level in Eastern Europe. Although telecom services are not cheap, broadband tariffs continue to fall and urban zones are increasingly home to competitive pricing levels. Cable TV is the dominant platform for pay-TV services in Hungary, although the segment has stalled as more consumers move to satellite and IPTV services. Some 55.0% of homes had cable TV in 2012, decreasing from 57.0% in 2007. Satellite TV is rarer among homes and tends to be more expensive, but the segment has expanded strongly on the back of greater offerings and wider coverage, with possession at 27.8% of households in 2012, having risen strongly from 19.2% in 2007. By 2020, 55.3% of homes will have access to cable TV, while a growing 30.7% will have satellite TV.

PUBLIC CONNECTIVITY
Advanced Wi-Fi accessibility
The total number of Hungarian Internet users stood at 6.1 million in 2012, having expanded by 12.9% over 2007. Growing access to more options of connectivity, especially Wi-FI and mobile broadband such as 4G, have allowed more users to access the web, especially for consumers unable to facilitate fixed subscription services. The percentage of the population using the Internet has expanded gradually, rising from 53.3% in 2007 to 60.8% in 2012, above the Eastern European average of 52.2% the same year. The installation of Wi-Fi services in restaurants, hotels and bars across Hungary over 2007-2012 has greatly assisted the access to the web among consumers. According to jiwire.com, there were 879 Wi-Fi locations in Hungary as of June 2013, with 394 of these in the capital Budapest. By 2020, Hungary is expected to have 6.9 million Internet users, marking a rise of 11.8% over 2013-2020. The percentage of the populace using the web is expected to reach 71.2% by 2020, which would place the country among the leaders in Eastern Europe for this indicator. The growing tourist industry in Hungary will likely boost Internet access further, as more leisure businesses provide free Wi-Fi to their clientele.
Chart 7 000 / % Internet Users and Percentage of the Population Using the Internet 2007-2020

Source: Note:

Euromonitor International from trade sources/national statistics Data for 2013-2020 refer to forecasts

ONLINE APPLICATIONS AND SOCIAL MEDIA

Social media penetration extremely high
Table 1 Internet site Facebook.com Google.co.hu YouTube Google.com Ten Most Visited Internet Sites by Reach June 2013 Description Social networking site Localised search engine Video sharing site Search engine Ranking (out of 100) 1 2 3 4

Index.hu Freemail.hu Neobux.com Amazon.com Blog.hu Wikipedia.org

Source: Note:

Internet portal Email service Paid-to-click services Online marketplace Blogging site Free encyclopedia

5 6 7 8 9 10

Alexa Reach refers to the number of unique visitors per month as a percentage of total users. Values correspond to the average of the three months ending at the end of June 2013

Social networking
Social media is one of the most popular online activities in Hungary, with the social network Facebook the most popular website in the country by hits as of June 2013 according to Alexa. Facebook also has extremely high penetration in the country, at almost half of the entire population according to Socialbakers at the same time, which has been a strong driving force behind the online adspend segment. LinkedIn and Twitter have also seen solid expansion but these newer social platforms are still used by a small minority.
Table 2 Social and Digital Media Statistics June 2013 2013 Facebook Users Facebook Penetration LinkedIn Users LinkedIn Penetration Most Popular Twitter Page (No. of Followers) Most Popular YouTube channel (No. of Subscribers)
Source: Socialbakers

1.0 million 48.8% 308,021 3.1% Eva Henger (126,869) Smosh (10.4 million)

Digital media
As in most countries in the region, YouTube is the third most popular website in the country, according to Alexa, with many Hungarians subscribing to a variety of channels for viewing on a regular basis. Foreign, especially North American, channels are extremely popular, with the comedy-based sketches called Smosh attracting the most Hungarian YouTube subscribers. Local web portal Index, the fifth most popular site in the country, has been pushing its own digital media offerings, and consumers are increasingly interested in domestic content. The rollout of widespread FTTH networks will likely boost this segment as consumers will have access to greater speeds for streaming and downloading data.

Sellsumers
The sellsumer sector has expanded strongly in Hungary, led by Amazon, which has grown rapidly in traffic over 2012 to become the eighth most popular site in the country. Although Amazon does not have a Hungarian platform, local consumers browse it frequently and order goods from neighbouring countries. This suggests there is great demand for a domestic online marketplace, as consumers move away from online classifieds and prefer a betterrounded product. Hungarians are comfortable with online transactions and electronic banking has reached a strong penetration level.

Cloud computing
Interest in cloud computing is beginning to peak in Hungary as businesses are becoming increasingly aware of its cost-saving and efficiency benefits. Although the IT sector is still growing from a fairly low base, many smaller businesses in the countrys finance and technology segments are already utilising t he cloud. A professional cloud computing association was set up in 2011, representing 25 cloud providers, with this assisting take-up of cloud solutions. According to datacentermap.com, there were eight colocation datacentres in Hungary at the end of 2012.

CONSUMERS OF TCM SERVICES

Broadband and pay-TV takeup weak among low-income homes
The impact of high public debt and recession has hit Hungarian homes, with telecom consumer expenditure suffering as a result of lowered purchasing power:

Average household expenditure on telecommunications services stood at HuF133,016 (US$591) in 2012, down by 12.2% in real terms over 2007. The impact of the global economic downturn and the eurozone sovereign debt crisis have limited consumer demand for telecom services; Average household expenditure on telecommunications equipment stood at HuF4,029 (US$17.9) in 2012, down by a rapid 44.4% in real terms over 2007. Due to an increase in austerity and consumer frugality, fewer Hungarian homes have been willing to upgrade to newer equipment; Average household expenditure on telecommunications equipment is forecast to rise by 21.9% in real terms over 2013-2020, while household spending on telecom services will increase by 27.8% in real terms. As Hungary gradually recovers from recession, consumers will increase demand for telecom goods and services, with the sector having been one of the stronger performers throughout the countrys economic difficulties. Although Hungary is one of the more income-equal countries in Eastern Europe, there remains a strong digital divide in some telecom segments, especially broadband Internet and pay-TV, with lower income homes typically located in rural areas. In 2012, only 21.9% of decile 1 households (the poorest 10.0% of households) had a broadband enabled Internet computer, whilst at the same time 66.7% of decile 5 and 94.8% of 10 households did so. In 2012, 77.6% of decile 1 households had possession of a mobile phone, whereas 100% of decile 5 and 10 households did. In terms of satellite TV systems, possession ranged from 5.9% of decile 1 households to 19.4% for decile 5 and 69.9% of decile 10 in 2012.
Chart 8 % of households Household Possession of Digital Equipment by Decile 2012

Source: Note:

Euromonitor International from national statistics Deciles are calculated by ranking all of the households in a country by disposable income level, from the lowestearning to the highest earning. The ranking is then split into 10 equal sized groups of households. Decile 1 refers to the lowest earning 10%, through to Decile 10, which refers to the highest earning 10% of households. The figure in brackets refers to the average disposable income of households in each decile

Hungarys urban consumers are extremely well connected, with many owning smartphones and accessing the Internet both from their handheld devices and fixed home subscriptions. Although the countrys economic difficulties have forced many to lower their spending levels, the telecom sector has held up well and holds some of the brightest prospects going forward. There has nonetheless been a strong drop off in purchasing power and connectivity in the countrys more rural regions, where a more aged and less IT -savvy population has been slower to cross the digital divide.

BUSINESS AND TECHNOLOGY

Strong business IT use and large online adspend sector
The Hungarian social media marketing landscape is led by local brands, especially in confectionary and decorative goods. Jewellery brand Extreme Silver and chocolate snack Turo Rudi are some of the most visible firms in the online domain, while other common brands include Milka and Samsung. The local online marketing scene is growing rapidly and brands are gradually beginning to advertise in order to attract customers to their online purchasing platforms, as opposed to just focusing on brand recognition. Hungary has been home to a number of crowdsourcing start-ups, especially in the crowdfunding and design segments, and the platform is becoming less a novelty feature and more a serious proposition for municipalities and private individuals. Creativeselector.hu became the countrys first crowdfunding page in 2012, while sites that focus on employment and freelancing have also seen rapid growth.

One of the strong business IT performers in the region: 92.9% of Hungarian businesses used a computer in 2012, which was an increase from 91.4% in 2007. Business Internet use has seen strong growth, rising from 86.4% to 90.0% over the same period, with 84.4% of businesses using fixed broadband in 2012. Hungary is one of the most progressive nations in Eastern Europe when it comes to business IT usage; Some 64.1% of businesses had a local area network in 2012, marking a gradual rise from 59.1% in 2007. Segments such as cloud computing have strong prospects in Hungary since so many businesses are focused on utilising IT in their strategies. Hungarian online adspend amounted to HuF31.8 billion (US$141 million) in 2012, seeing a strong rise of 63.2% in real terms over 2007, and was only one of two adspend categories to see positive real growth. Online adspend made up 19.3% of total adspend in 2012, which made it the third largest category behind TV and print, having risen from 8.3% in 2007. The countrys online advertising segment is traditionally strong and is set to influence the industry on a greater level going forward. Hungarian Internet retailing amounted to HuF165 billion (US$694 million) in 2012, which was a strong increase of 196% in real terms over 2007. Home care Internet retailing has seen the fastest real expansion over 2007-2012, rising by 887% in real terms, as more local consumers have started ordering products for their home online due to a larger offering. Consumer electronics and video games Internet retailing made up the largest proportion of the web retailing market, aside from other Internet retailing, at 13.8% in 2012. Internet retailing is projected to expand by 71.5% in real terms over 2013-2017, one of the stronger increases in the region.
Table 3 Regional E-Government Development Ranking 2010 and 2012 2010 Hungary Poland Serbia Macedonia Bosnia and Herzegovina
Source: Note: UN Public Administration Programme Latest data available; ranking out of 190 nations

2012 31 47 51 70 79

27 45 81 52 74

According to the UNs E-Government Survey 2012, which measures a combination of web provisions, human capital and ICT infrastructure, Hungary placed 31st out of 190 nations for its online state services, which was above most Eastern European nations despite a decline from 27th in 2010. Hungary has traditionally invested significant sums in order to lift its e-services offering to Western European standards and allow its citizens a strong link with the government through the online domain. However, austerity measures have forced a slash in the budget for egovernment infrastructure.

SNAPSHOT IN 2020
Table 4 Indicator Household possession of broadband-enabled computer Household possession of cable TV Household possession of mobile telephone Household possession of fixed-line telephone Household possession of satellite TV system Number of mobile phone subscribers Mobile subscribers per 100 inhabitants Number of Internet users % of population using the Internet
Source: Note:

Key TCM Indicators 2020 2020 82.2% of households 55.3% of households 98.6% of households 27.1% of households 30.7% of households 12.5 million 128 6.9 million 71.2%

Euromonitor International from national statistics/International Telecommunications Union Figures are forecasts

DEFINITIONS

3G
Third generation mobile systems which provide high-speed data transmission and support multimedia applications such as full-motion video, video-conferencing and Internet access, alongside conventional voice services.

3.5G
3.5G refers to evolutionary upgrades to 3G services that provide significantly enhanced performance.

4G
Fourth generation mobile systems, also known as beyond 3G. 4G technologies provide data transmission at much higher rates than previous generations as well as high-quality multimedia applications on an anytime, anywhere basis.

Apps
Apps, or applications, are small, specialised software programmes that are typically downloaded onto mobile devices.

ADSL (Asymmetric Digital Subscriber Line)

A technology used for sending data quickly over a conventional copper telephone line.

Bandwidth
The measure of the maximum capacity of a data link in the network.

Broadband
High-speed access to a public Internet (a TCP/IP connection). High-speed access is defined as being equal to, or greater than 256 kbit/s, as the sum of the capacity in both directions. This can include for example cable modem, DSL, fibre-to-the-home/building and other fixed (wired) broadband subscribers.

Cloud computing
Data storage that relies on sharing computing resources rather than having local servers or personal devices to handle applications.

Crowdsourcing
A process that involves outsourcing tasks to a distributed group of people. These tasks could be online or offline, paid or for free, and they are outsourced to an undefined public.

FTTH
Fibre to the Home (FTTH) is a high-speed, fibre-optic broadband communication delivery technology that extends from a central office to a home or office space.

ICT Price Basket

The International Telecommunication Unions measurement of the cost and affordability of information and communications technology (ICT) services across more than 160 countries globally. Ranking based on the cost of ICT services as a % of gross national income (GNI) per capita.

Internet-enabled mobile phone

A mobile phone which allows its user to access the Internet via in-built access technology.

Integrated Services Digital Network (ISDN)

A network which allows the digital transmission of voice and data over traditional copper lines.

IPTV
A technology that delivers digital television via fixed broadband access.

LAN (Local Area Network)

A computer network that interconnects computers in a limited area.

LTE (Long Term Evolution)

LTE is a 4G technology that will enable mobile phones to provide significantly faster data rates with a potential for 100 Mbps downstream and 30 Mbps upstream.

M-commerce
M-commerce (also referred to as mobile retailing) is the use of wireless handheld devices such as mobile telephones, smart phones or other devices to connect to the Internet and purchase goods online.

Mobile broadband
Various types of wireless high-speed Internet access through a portable modem, telephone or other device.

Narrowband
A service which provides Internet data speeds up to 128 kilobits per second otherwise known as dial-up. This is most commonly used for making phone calls over a copper wire.

Networked Readiness Index (NRI)

The Networked Readiness Index (NRI), by the World Economic Forum, measures the propensity for countries to exploit the opportunities offered by information and communications technology. It is published annually. The NRI seeks to better comprehend the impact of ICT on the competitiveness of nations. The NRI is a composite of three components: the environment for ICT offered by a given country or community, the readiness of the communitys key stakeholders (individuals, businesses, and governments) to use ICT, and finally the usage of ICT amongst these stakeholders.

NFC
Near Field Communication technology allows the electronic transmission of data between wireless devices, or a between a wireless device and a stand-alone terminal.

Sellsumers
Private consumer-to-consumer salespeople providing goods and/or services online via private transactions or retail/auctioning websites.

Smartphone
A mobile phone that offers greater computing capability and connectivity than a basic feature phone.

VoIP (Voice over the Internet Protocol)

A set of hardware and software that allows the transmission of voice conversations over a data network.

Web 2.0
A second generation of web-based communities and hosted services such as social-networking sites and wikis which facilitate collaboration and sharing between users.

Wi-Fi
Short range wireless technologies that allow an over-the-air connection between a wireless device and a base station (also known as a hot spot), or between two wireless devices. WiFi has a range of around 30 metres indoors, and around a kilometre outside.

WiMAX
Worldwide Interoperability for Microwave Access is a wireless technology, which is similar to WiFi, but with a longer range of many kilometres. WiMAX is a wireless alternative for an access technology to provide high speed access links instead of copper-based technologies.