The Hungarian telecoms regulator has extended the licences of the nation’s three mobile operators to use spectrum in the 900 MHz and 1,800 MHZ bands, paving the way for a tender for other frequencies this year.
The regulator, NMHH, and the three…
The Hungarian telecoms regulator has extended the licences of the nation’s three mobile operators to use spectrum in the 900 MHz and 1,800 MHZ bands, paving the way for a tender for other frequencies this year.
The regulator, NMHH, and the three operators – Deutsche Telekom’s Magyar Telekom, the UK’s Vodafone and Norway’s Telenor – issued a joint statement today saying the 900 MHz and 1,800 MHZ licences, which would have expired in 2014 and 2016, have been extended until April 2022.
According to the regulator, the contract extensions will generate more than HUF100bn (US$436m) by 2022.
NMHH said the extension and harmonisation of spectrum rights forms part of its plan to develop a more transparent and predictable framework for the domestic mobile market. The regulator also aims to boost mobile broadband coverage as well as competition within the sector.
NMHH said the changes have cleared the way to release spectrum in the 800 MHz band, adding that there are plans to launch a tender for other mobile frequencies this year.
At a press conference yesterday, the regulator’s new president, Monika Karas told reporters she would sign decrees to start the tender process within the next few days.
An NMHH spokesperson said the regulator hopes the tender itself will be launched in Q4 this year and winners selected before next summer.
As the tender process is still being prepared, the spokesperson said they could not comment on whether the tender would be open to both existing operators and potential new market entrants.
Telenor Hungary said the value of its agreement with NMHH is HUF27bn (US$118.2m). The company added that it will be able to keep the licences acquired in the annulled 2012 auction, but they will now expire in 2022 instead of 2027. As such, Telenor will have some of its investment in the spectrum refunded.
Hungary held a mobile spectrum auction in January 2012 which awarded the largest, most valuable frequencies to a consortium of state-owned companies, effectively establishing a fourth player in the market. However, this February, Hungary’s top court, the Curia, annulled the auction, saying it was unlawful.
