MVM signs deal with Huawei to establish new mobile network
Chinaʼs telecommunications and networking company Huawei is expected to sign a contract with state-owned MVM Net for the establishment of Hungaryʼs fourth mobile telecommunications network, daily Népszabadság reported today. No public procurement tender was called for the contract, the report said.
The Hungarian government will spend HUF 12.8 bln on the network, and is not required by law to call a procurement tender for the project, regardless of its cost, according to MVM.
The frequency block in question is the 450MHz band, which MVM purchased last spring.
At present, the network provides 30% penetration in Hungary and is currently being used in test mode for a handful of government applications, according to reports. The companies are aiming for 95% penetration by March 2016, Népszabadság reports.
MVM Net Zrt. is a subsidiary of state-owned Hungarian Electricity Workks (MVM).
In the past, officials in the US, UK, India, Canada and Australia have reportedly raised concerns about the security of Huaweiʼs networks, including making charges that the company assists the Chinese government in spying on its network customers – charges the company denies.
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