Deutsche Telekom has signed an agreement for major investment in Hungary.
Hundreds of millions of euros will be spend on creating a nationwide high speed internet network in a deal which also involves Hungarian government and European Union support.
The Germans owns 60 percent of the national phone company Magyar Telekom, as a subsidiary.
Hungarian Prime Minister Viktor Orban said said hundreds of billions of forints will be invested to bring broadband internet to all Hungarian households two years before the EU digital deadline of 2020.
Right now 60 percent of Hungarian households have some kind of broadband connection.
The investment is also linked to cutting the high level of taxes which some companies have complained about.
Magyar Telekom’s additional bill from those taxes was more than 100 million euros last year .
Magyar Telekom’s CEO Christopher Mattheisen told euronews: “We do not have any concrete numbers either on the side of the Deutsche Telekom/Magyar Telekom side, or from the government side, but we do have assurance from the Hungarian government that they will review the taxation and their broadband regulation policies.”
Telecoms, energy and financial companies have been hit by special taxes introduced by Orban to cut the budget deficit when came he to power nearly four years ago.
Our correspondent in Budapest concluded: “This partnership agreement opens the possibility that the government could revisit the controversial special taxes hitting Hungary’s technology sector. Certainly Magyar Telekom’s boss sees this as a turning point in relations between his company and the Hungarian government.”