15 October 2010

Brussels – ETNO, the European Telecommunications Network Operators’ association, is concerned by the announcement by the Hungarian Government of a possible three-year tax of ?220 million per year to be imposed on the telecommunications sector to bring Hungary’s budget deficit in line with European Union (EU) rules next year.

“Such a heavy burden to be imposed on a sector, which is driving growth and jobs and is already facing huge investment in next generation access networks in the years to come, would be worrying,” said Michael Bartholomew, ETNO Director.

Such a tax would create an additional burden on the telecoms sector, hampering its capacity to invest in the much needed high speed networks and hence to meet the Digital Agenda and EU2020 objectives.

ETNO is concerned that the imposition of a special tax is not in line with the EU telecoms rules, as recently reiterated by the Commission in its decision on the Spanish and French telecoms taxes.

ETNO calls upon the Hungarian Government to reconsider this proposal.

For more information, please contact: Thierry Dieu, ETNO Communications Manager Tel:    (32-2) 219 32 42 Fax:  (32-2) 219 64 12 E-mail: dieu@etno.be

ETNO’s 41 member companies from 35 European countries represent a significant part of total ICT activity in Europe. They account for an aggregate annual turnover of more than ?250 billion and employ over one million people across Europe. ETNO companies are the main drivers of broadband and are committed to its continual growth in Europe.