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Financial and Technical Advisory to the Hungarian Government in the Purchase of Telecommunication Service for Public Emergency Services PDF Print E-mail
Country Hungary
Name of client Prime Minister’s Office, Hungary
Origin of funding
Public
Dates (Start-End) 2002-2003 (follow-up in 2004)

Hungary

Detailed description of project Type of services provided
The Government Information & Communication Technology (ICT) and Social Relations Office, part of the Hungarian Prime Minister’s Office established a working group to implement the 1158/2002. (IX.26) The government decree on the creation of a nationwide unified digital radio-network system (EDR).
The unified digital radio-network telecommunication system would serve for Hungary’s 35,000 strong emergency services:
  • Police,
  • Border guards,
  • Customs,
  • Ambulance,
  • Flood relief,
  • Fire Brigades.
This system will be capable of transmitting voice, text messages, give remote end-user access to the central databases and will be designed for routine operations and emergency incidents. The Hungarian Government ICT and Social Relations Office mandated our company to participate in the EDR Working group. The working group carried out a detailed survey about the EDR requirements, cost and asset value of present telecommunications systems used by the emergency services.
It surveyed international EDR experience and consulted with the emergency services so a business model could be proposed.
Financial and technical advisory to the government in the purchase of unified digital radio-network telecommunication service.  Elaborate cost and asset valuation scenarios, and service level agreement (SLA) alternatives.

We provided technical assistance to Prime Ministers’ Office in evaluating various methods of implementing a new countrywide EDR.  
  • Analyse previous Hungarian EDR projects experience in both technical and financial aspects (state investment, purchase of service, present system cost).
  • Survey international EDR experience to give a global prospective to the problem.
  • Study the relevant legislation.
  • Participate in compiling a questionnaire.
  • Participate in an inter-ministerial EDR Committee.
  • Financial valuation of different project alternatives (state investment, purchase of service, present system cost).
  • Documentation (Government decree) preparation.
  • The framework of the Service-level Agreement was elaborated with the future provider.
  • The financial modality was verified from public finance and debt registration point of view - due to the high amount of commitment involved - , if this service, purchased exclusively by public entities, enters to the government expenditure according to the OECD/ EUROSTAT calculations.
A Public Private Partnership (PPP) model was found to be the most cost effective solution for the Government, purchasing EDR services from a Telecom Service Provider who would Design, Build, Finance and Operate (DBFO) the network on behalf of the Government.