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Consortium of state-owned companies could bid in frequency auction, says Napi Gazdaság

Three state-owned companies are expected to bid in consortium in a mobile frequency auction, business daily Napi Gazdasag said on Wednesday, without citing any sources.

Postal company Magyar Posta, the Hungarian Electricity Works (MVM) and the Hungarian Development Bank (MFB) will bid in a consortium with respective stakes of 10%, 45% and 45%, the paper said.

Parties must declare their interest to bid in the auction by December 8. The auction is expected to take place in January.

The state-owned companies have not announced any intention to bid in the auction, but Magyar Posta’s revenue from conventional postal services is on the decline and the company is preparing for the deregulation of the market from 2013, the paper noted.

The consortium wants to provide mainly data transfer services and aims to take 11% market share in terms of subscribers and a bigger share in terms of revenue by 2017, Napi Gazdasag said.

Magyar Posta is expected to apportion its post offices to the company established to bid in the auction, while MVM and MFB provide the financing necessary for developments, the paper said. Experts estimate the cost of such developments could reach HUF 80bn-115bn over five years.