The funds necessary for the developments are provided by the deduction of the telecommunications utility tax and the special telecommunications tax.
The 4iG telecommunications and infocommunications company group will invest HUF 150 billion in mobile and landline networks by 2028, making the use of broadband internet and high-definition television services available to nearly 100 percent of the population with 5G and gigabit networks, announced Jászai Gellért, the President of the 4iG group at a press conference in Budapest after signing a cooperation agreement with the government.
Pursuant to the agreement, the government will abolish the utility tax charged on telecommunications service providers from January 1, 2024, and the additional telecommunications tax charged on communications service providers from January 1, 2025, said Economic Development Minister Márton Nagy.
According to the announcement of the Ministry of Economic Development (GFM), the parties cooperate in the areas of telecommunications network development, the digitization of SMEs, the digitization of Hungarians across the border, the development of the digital state, and the development of supply chains.
Gellért Jászai explained: 4iG will fulfill the goals set out in the National Digitalization Strategy up to 2030, adopted by the government, by 2028. Among the company’s commitments is that the 150 billion HUF network development will make the gigabit-capable network available to an additional 1.1 million households, as well as the high-capacity 5G network, at least 1,000 by installing a base station. He said that the funds needed for the developments are provided by the elimination of the telecommunications utility tax and the special telecommunications tax.
According to the head of the ministry, 4iG has become a key player in the entire economy in addition to the telecommunications sector, and its foreign investments and developments are in line with “the government’s investment policy”, which is why they support 4iG becoming a key telecommunications player in the region.
Márton Nagy emphasized that, in addition to the banking, media and energy sectors, he also strives to ensure that the ratio of domestic ownership exceeds 50 percent in the telecommunications sector. The government’s goal is for Hungary to be among the ten most digitally developed countries in the EU by 2030, and this requires new developments, which cannot be realized without 4iG, he underlined.
GFM emphasized in its statement: there is no competitiveness without a developed telecommunications sector, since the digital economy already accounts for at least 25 percent of the total GDP and 7 percent of R&D expenditures, while taking the multiplier effects into account, it provides job opportunities for 17 percent of the employed.
It was highlighted: the government strives for partnership with players in the telecommunications sector, this is confirmed by the agreement signed with Magyar Telekom on September 15 and the statement signed today.
According to the company’s previous announcement, in the first six months of the year, 4iG’s consolidated net sales increased by 118.5 percent to HUF 266.2 billion, its profit before interest, taxes and depreciation (EBIDTA) increased by 190 percent to HUF 95.3 billion, while the after-tax result was HUF 7 increased to HUF .8 billion.
4iG’s shares are listed in the premium category of the Budapest Stock Exchange, the share price has reached a minimum of HUF 611 and a maximum of HUF 880 in the past year.