
although many companies have now begun to make a
shift toward the Internet, the new trend in the U.S. is to
actually “flee the dot-com”. As Keith Dawson writes
in his weekly log, Tasty Bits from the Technology
well as http://interactive.wsj.com/articles/
SB942276734846706339.htm and http://www
.msnbc.com/news/333919.asp), “focus groups are
beginning to show that average folks don’t remember
the companies, don’t like the ads, and resent the ever-
present image of the greedy twenty-something zillion-
aire.”
Meanwhile, telework remains a remote and
wishful concept. Despite increased traffic congestion
and pollution in most of Hungary’s major cities,
especially Budapest, it’s not economically feasible to
have people work from home, given the poor state of
the telecommunications infrastructure -- not to men-
tion the cost. Moreover, most Hungarians still work
along lines of an industrial and agrarian economy, as
opposed to a knowledge-based one.
As for e-commerce, while making a grandiose
appearance, it’s caught in an awkward predicament. To
be sure, e-commerce in Hungary will grow but, if
present trends continue, its influence will be limited.
The main reason is that many are wary of initiating a
system for serious online transactions. Even non-
-monetary transactions, such as booking and reserva-
tion services, are not widely available. This is because
there lingers a fear and mistrust of online services. For
instance, while the ability to order and pay by credit
card over the telephone has relatively a long and
established tradition elsewhere -- notably the U.S. and
Canada – it’s still a concept very much alien to the
Hungarian economy.
A less than extensive user base is an additional
problem. Hungary remains one of the most expensive
places in Europe for Internet use. Although the in-
crease in the number of users may look impressive, it
still represents less than 7 percent of the population,
with only 14 percent of all PCs in Hungary connected
to the Internet.
While efforts have been made to get more people
online, access is still hindered by high telecommunica-
tion charges. This also goes for cable, which costs
about a quarter of an average Hungarian’s salary. A
study commissioned by the OECD confirmed that high
connection fees coupled with the high cost of local
telephone calls is impeding the uptake of the Internet
in Hungary. Unfortunately, this situation looks set to
worsen, with a 20-40% rise in telephone charges
expected in the new year.
Alternative efforts to entice more people online,
such as the post office’s telepost offices, are not only
expensive but also suffer from inconsistent and
lopsided development. In the Galga valley, for exam-
ple, a region about 40 km east of Budapest, a small
village has a telepost office while neighbouring towns
and villages, which are larger and more strategically
located, don’t.
As for the social aspect of computer networking,
here, too, formidable challenges and obstacles exist.
While the Sulinet program may have succeeded to a
certain extent in introducing many to the medium,
students and teachers are, nevertheless, not encour-
aged to understand the medium, but are taught to
simply use it. Similarly, for the community of users as
a whole, the concept of a “net community” is lacking
somewhat. Most know nothing about ICANN, no less
have an understanding nor even interest about any of
the issues surrounding the future of the Internet.
Another challenge faced by Hungarians embrac-
ing the Internet is the view of computer-mediated
communications as an alternative source for informa-
tion. Unfortunately, the Internet is still regarded as a
supplement to conventional media, a view that is
being reinforced by radio, television, and print.
Meanwhile, the old habit of regarding the
Internet as a cesspool of anarchy and perversity dies
hard. Earlier in the year, a report on hackers was aired
on Hungarian television. Instead of presenting a
comprehensive view into this sub-culture, with an
additional follow-up into Hungary’s unique hacker
culture, the report turned out to be nothing more than
a shoddy play on Eric Raymond’s dichotomy of
hackers and crackers (see “Homesteading the Noone-
sphere”), the simplified conclusion being that one
group (hackers) is benevolent (they are people who
try to find weaknesses in systems) while the other
(crackers) are nothing more than a malevolent bunch
of people.
To this extent, a 3-5 person special group within
the police will be established in the new year to deal
with “illegal” activities on the Internet. According to
media reports, the main purpose of this department is
to scan Hungarian sites for pedophilia and bomb-
-making information which, according to authorities
and the media, are the two most “dangerous” types of
content to be had. However, as with all such seem-
ingly noble efforts to protect the public from harm,
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