Frequency tender winners to be announced Nov 22
Winners of a tender for frequencies in the 900MHz band will be announced on November 22, Márton Ilyés, department head at Hungary's National Media and Infocommunications Authority (NMHH), said at a press conference on Friday.
The NMHH on Thursday published a two-round international tender for 15-year frequency licenses in the 900MHz band.
A 5MHz "A" frequency block is being offered at a starting price of net HUF 4 billion. 1MHz "B" frequency blocks are being offered at a starting price of HUF 700 million apiece, and 0.8MHz "C" frequency blocks are being offered at a starting price of HUF 560 million.
Registrations to participate in the tender must be submitted by October 20, 2011. The participation fee is HUF 40 million plus VAT.
The tender will be closed on December 12, 2011.
Bidding will take place in the first phase of the tender. Blocks will be assigned in the second phase.
The winner of the "A" block will also get an option for three 1,800MHz blocks and three 2,100MHz blocks.
If the first round of the tender is closed without result, bids may again be submitted for the "A", "B" and "C" blocks in the second round.
Participants may win no more than a combined 7.8MHz in the band.
At present, the only mobile telecommunications service providers in Hungary are Deutsche Telekom unit Magyar Telekom, and the units of Telenor and Vodafone.
The almost 11 MHz of capacity on offer in the tender will ensure access to high-speed broadband mobile service for everybody across the country, said NMHH chief director Janka Aranyos Börcs. It will also boost competition on the market, she added.
The tender opens the door to a new player on Hungary's mobile market, one that is expected to have lots of capital as well as a stable and transparent ownership structure, said deputy chief director Gabor Kolláth. The winner of the 5MHz block will get a 50% discount off the usage fee for the frequency for four years, he added.
The winners of the frequencies may not sell them for three years from the time of their purchase and they are required to make investments.
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