Building a Gigabit Hungary

A decade after the last major network development initiative, Hungary is once again launching a significant wired infrastructure program. The „Gigabit Hungary Program” aims to deliver gigabit-capable network technology to every household, business, and public institution in the country using EU funding. We spoke with Dániel Kovács, Managing Director of the Digital Government Development and Project Management Ltd. (DKF), the organization responsible for the program’s professional support, about the technological requirements, application process, and opportunities for service providers.

– How does the Gigabit Hungary Program reflect EU programs and expectations?

– Documents approved by the European Union, such as the Digital Decade strategy, set concrete goals for 2030. For infrastructure, the aim is that by the end of the decade, every EU household should have access to internet speeds of at least 1 Gbps and full 5G coverage. We based our program on these goals, with the difference that we aim to reach them by the end of 2028, covering 95% of potential demand points.

– Hungary had a similar initiative before – the Superfast Internet Program (SZIP). What lessons did you learn from it?

– The principles and structure will be similar. We will rely on a combination of providers’ own investments and public funding. The actual work begins with a demand assessment across all 174 districts, identifying the number of locations where gigabit connections need to be deployed. These include every household, public institution, and business – essentially, every place where internet service might be required. While not every location will necessarily subscribe to gigabit service, the infrastructure must be in place if the need arises. It’s crucial that implementation starts on time – previous delays proved nearly impossible to recover from.

– DKF is building a Gigabit Support Monitoring System (GTMR) for mapping demand, managing applications, and monitoring progress. Why not reuse the old system?

– That system was built nearly ten years ago. Technology and expectations have changed dramatically. The GTMR, developed under the DIMOP Plus 3.1.1 project, tracks everything from planning to the issuance of usage permits. It not only supports providers in their network development but also enables us to manage and oversee implementation. The database is far more sophisticated, integrating NMHH-approved permits and rollout plans more easily. Modules for applications and beneficiaries are also more advanced. In short, GTMR is more than a project management tool – it ensures the program is executed on time, with the right quality and impact.

– How accurate will the demand mapping be?

– We’ve made great progress compared to the previous system. We’ve pulled data from multiple registries, giving us the most up-to-date and accurate address database ever compiled for residents, businesses, and public institutions. By the end of March, we opened this up for public consultation, allowing citizens to verify and report inaccuracies in the listed service levels. ISPs can also report recent upgrades not yet reflected in the data. Uniquely, mobile base stations are also included as demand points, aiming for near-complete 5G coverage. To achieve this, about 70% of base stations must be connected to fiber. Currently, that figure stands at just 20-30%, so there’s significant room for improvement.

– What counts as „gigabit-capable” technology under this program?

– A European regulatory body issued guidelines, but we’ve opted for stricter standards. There is full consensus in Hungary that no copper-based technology will be accepted – it’s outdated, energy-intensive, and not future-proof. The focus is on fiber-to-the-home (FTTH) solutions, but fixed wireless access (FWA) using 5G is also allowed. A connection is considered gigabit-capable if it offers at least 1000 Mbps download and 300 Mbps upload speeds.

Including mobile base stations as demand points wasn’t accidental. We aim to significantly improve Hungary’s 5G mobile coverage. To make 5G truly beneficial, most base stations must be fiber-connected – a huge leap from the current situation.

– Can providers freely choose between the two technologies?

– Applicants can choose from three FTTH solutions, and 5G FWA is also accepted. Each technology type carries a different score during evaluation – the better the tech, the higher the score. FWA usage will be capped per district, with an average maximum of 20%. This means 80% of the rollout must use wired solutions. Modeling shows that with this ratio, we can cover nearly everyone with gigabit connectivity, whether via fiber or wireless.

– When will the application process start, and what will it look like?

– By the end of May, mapping will be complete. Based on that and consultations with providers, we’ll know which areas are already covered, which will see private investment, and which need public funding. We’ll hold workshops in late spring and early summer to explain the process to providers and engineers.

Applications will open mid-summer in multiple rounds under the DIMOP Plus 3.1.2 scheme, with a total funding pool of HUF 85 billion. Providers can apply for any of the 174 districts – except Budapest, which is excluded due to its development level. Each district will have a maximum funding amount, and bids will be evaluated based on how much own funding the applicant contributes, how many locations they will cover, and their technical specifications.

– What happens to districts with no bids?

– Naturally, more densely populated, wealthier areas will be more attractive. If some districts receive no bids initially, the authorities can revise the terms to encourage submissions.

– What are the next steps after that?

– We plan to evaluate applications by autumn. In Q1 2026, the Managing Authority can sign contracts with selected applicants, and actual network development can begin in the first half of 2026. It’s important to note that DKF is not the grant issuer – applications will be handled via palyazat.gov.hu and the EPTK platform. Our role is to support the Managing Authority with professional validation and monitoring through the GTMR system.

– Many Hungarian SMEs are active in telecom. How are you ensuring they can participate?

– The call is open to SMEs as well. The main goal is to increase gigabit coverage, so company size does not add any extra points in the evaluation.