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Romanian, Vietnamese companies disqualified from frequency auction

Hungary’s National Media and Infocommunications Authority (NMHH) on Monday said it excluded a Romanian company and a Vietnamese company from bidding in a frequency auction because of shortfalls in their registrations to participate.

Romania’s RCS and RDS failed to meet a requirement concerning market regulator fees and Viettel Group’s registration contained "several serious formal deficiencies that could not be corrected", NMHH said.

NMHH accepted the registrations of the three companies that share Hungary’s mobile telecommunications market at present - Magyar Telekom, Telenor Magyarorszag and Vodafone Magyarorszag - as well as of a newcomer, a consortium of the state-owned Magyar Posta, the Hungarian Electricity Works (MVM) and a unit of the Hungarian Hungarian Development Bank (MFB).

The deadline for registering to participate in the auction for frequency blocks in the 900 MHz band was December 8. The bidding period will start on January 5, NMHH said.

The NMHH announced the tender for the frequencies on August 4. A 5MHz "A" frequency block is being offered at a starting price of net HUF 4bn. 1MHz "B" frequency blocks are being offered at a starting price of HUF 700m apiece, and 0.8MHz "C" frequency blocks are being offered at a starting price of HUF 560m.

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.