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New Regulation on Electronic Communication

New Regulation on Electronic Communication

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The supervisory activity of the National Media and Infocommuncations Authority (“NMIA”) and the operation of communication service providers will be highly affected by the implemented provisions of the European Electronic Communications Code that prescribes the applicable new European framework of electronic communications.

Hungary was one of the first EU country that implemented the European Electronic Communications Code by amending the Act C of 2003 on Electronic Communications in July 2020. The NMIA finalised this implementation procedure by elaborating the detailed national provisions at the end of 2020. Due to this comprehensive strategic work of the NMIA, 22 decrees have been either reviewed or adopted.

According to the NMIA’s communication director, the new provisions not only changed the name of the categories of the services, but also the scope of services falling under the regulations expanded significantly (e.g. e-mails and machine to machine M2M services). The newly applicable regulations modified the provisions on subscription contracts for electronic communication. This new decree redefined and reregulated the conclusion, amendment and termination of subscription contracts, the mandatory content of general terms and conditions and individual subscription contracts.

Furthermore, telecommunication service providers face another change, as they may only conclude a two-year-long fixed-term subscription contract at the request of a subscriber and only if the subscriber purchases a device. In any other cases the fixed term of a subscription agreement may not exceed one year. In addition, instead of services of the past (e.g. telephone line, telephone book) the affordable broadband internet services have been in the focus of the new set of regulations. The aim is to facilitate the deployment of very high capacity networks and the distribution of financial and other burdens between service providers.

The implementation of these new provisions will be monitored by NMIA during 2021. According to the authority, NMIA will monitor whether service providers are prepared for the new rules and apply them in practice, including the significantly amended basic rules for the subscription contracts.

By Rita Parkanyi, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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