Magyar Telekom on Thursday said it is expanding its client service portfolio by taking the first steps to entering the Hungarian retail gas and electricity market.

"In line with Magyar Telekom’s strategy of capturing incremental revenue sources in business areas where the company can build on its existing capabilities, it has decided to enter the retail energy market, via the resale of natural gas and electricity, leveraging off the extensive sales networks that it already has in place. It is anticipated that participation in the retail electricity and gas market will enable Magyar Telekom to retain existing, and win new, telecommunication customers with attractive energy offers. The company expects that such electricity and gas offers will help to support upsell and upgrade offers in the telecommunication business as well," Magyar Telekom said.

Magyar Telekom will launch electricity and gas retail offers for a targeted segment of its residential and business customers from April 2010 to test customer perception and acceptance in the initial phase. Following the phase, the company will assess the potential for further penetration of the energy market in the second half of 2010.

Liberalization of the Hungarian electricity and gas market has been completed by July 2009 enabling Magyar Telekom to team up with a wholesale provider that will supply the Company with sufficient electricity and gas volumes, the telco said. Magyar Telekom is going to start reselling electricity and gas to its existing customer base as a bundled product supplementing the telecommunication services offered, it added.