Act 100 of 2003 on electronic communications (Eht.) identifies the institutions responsible for state duties connected with electronic communications and their responsibilities. It creates the Hungarian national regulatory authority called National Communications Authority, Hungary which represents also a new organisational model. The new Authority is a unified body directed by a Board of seven members. Management by a body is less usual in Hungarian public administration, but is a proven practice of other European countries.
As a result of implementation of the new Community regulatory framework system that entered into force on 25 July 2003 the major responsibility of the authority – in respect of shaping the market conditions – is
- to analyse the national market of the sector;
- to examine which are the key (relevant) markets of the sector in Hungary;
- whether competition is appropriately ensured on them;
- when competition is not ensured which are the players having significant market power,
- on which at least one of the obligations defined in the Act that is proportionate to the market distortion and the specific position of the given market player and has the extent that is needed to ensure competition must be imposed.
The Eht. gives the authority the means with which it can intervene in the behaviour of the market players when needed. Enlarging the scope of means available to the authority, creation of a more efficient system of sanctions that better promotes voluntary application of laws is justified also by the fact that great emphasis needs to be placed on post-audit of the entities performing the given activities and market surveillance because the earlier regime of permits needed for market entry is replaced by notification to start a given activity. This can be carried out successfully only when strong and efficient means are available to the authority.