The network, which is currently in testing phase, is expected to reach a coverage of 70% of the country by the end of the year, through the establishment of 70 base stations supplied by private partner Huawei in November, and a total of 185 base stations by January, the announcement said. By March 2016, the network is supposed to reach 95% coverage.

The network is expected to become ready quickly, as it uses LTE 450 technology, allowing the company full nationwide coverage with fewer base stations than are needed for higher frequency ranges, our in-depth report in mid-October reveals.

Antenna Hungária Zrt., a firm that owns radio towers and was acquired by the state last year, has been charged with carrying out the work, while Huawei will supply the technology. Both companies were hired for the HUF 12.8 bln project without public procurement.

The investment is expected to return in 8.5 years, MVM NET CEO Kornél Krénusz was cited saying in the press release issued today.

MVM Netʼs network will serve mainly government-purposed telecommunications needs and contribute largely to the development of digital public services in Hungary, Hungarian news agency reported today, citing an earlier announcement by the company.

In the past, officials in the U.S., U.K., India, Canada and Australia have reportedly raised concerns about the security of Huaweiʼs networks. The Chinese telecoms company insists that its security is sufficient and that it protects the privacy of its customers.