Business 26 November 2019, 12:15pm

Hungary to step up 5G development

Portfolio

By the end of 2030, the majority of households will have access to 1 gigabit bandwidth, László Palkovics, Minister of Innovation and Technology, said on Tuesday. The government will make efforts to build the 5G network in major cities and along major roads as soon as possible, he added.

Kiakadt az internet feltalálója, három súlyos gondra figyelmeztet

Hungary could play a regional role in testing applications built on 5G and become a European hub for 5G developments, Palkovics said.

The government aims to provide 1 Gbps bandwidth to all public institutions and 75% of households by the end of 2025.

As one of the seven strategic pillars of Hungary's economic policy, developing the digital infrastructure will prepare the country for the fourth industrial revolution, the minister said. The key tools are supporting the Industry 4.0 transition, developing the 5G network, drafting an artificial intelligence (AI) action plan and strategy, implementing the Digital Welfare Programme and continuously expanding network coverage and access, Palkovics said.

The digital economy has gained weight in Hungary as the ICT sector's direct and indirect added value grew by 20% over the past five years to HUF 6,000 billion. Taking into account digital projects and jobs in other industries, the digital economy could contribute more than 25% of GDP and employ 17% of working people, the minister said. ICT is also the second largest exporter after the car industry, accounting for nearly 8% of all exports and more than 9% of exported services in 2018.

As a result of Hungary's Superfast Internet Programme, nearly all households now have access to 30 Mbps internet connection, and Hungary ranks 11th on mobile download speeds and eighth in coverage globally. However, while Hungary is in the vanguard regarding broadband coverage and internet use, it is substantially lagging behind in the integration of digital technologies and in human capital, Palkovics pointed out.

One of the key objectives of the government's upcoming National Digitalisation Strategy is to build the 5G network faster and more cost-efficiently through state participation, Palkovics said.

Regarding AI, the intention is to put Hungary among leading European nations in this regard and make it a reference point globally. Increased uptake of AI-based developments could improve the competitiveness of Hungarian businesses, so the goal is to involve as many SMEs and startups in AI projects as possible, potentially in partnership with big corporations, universities or international actors, Palkovics said.