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Gov’t signs contract with MTelekom, T-Mobile for digital radio network

The government signed a contract with a consortium of Magyar Telekom and its wireless services unit T-Mobile on Thursday to build a digital radio communications network for Hungary's emergency services. The consortium won a tender to build the network in mid-October, asking for an annual service fee of Ft 9.325 billion. T-Mobile CFO Zsigmond Bodnár said at the signing that the fee could be raised if the state decides to develop the network further, use it for additional services or raise the number of communication devices from the 14,000 contained in the contract. The government will pay the first fee in 2007, and the contract is valid until the end of 2015, government commissioner for the project István Pesti said.
The network must allow coverage in the capital by April 5, 2006, and nationwide coverage -- tantamount to 94% of the country's area -- by the start of 2007.