Hungary to Receive HUF130.6 Billion at Spectrum Tender

By Veronika Gulyas

BUDAPEST--Hungary's telecommunication regulator NMHH said Monday it will receive 130.6 billion forints ($530 million) from four players who have won the tender for various unused broadband spectrum licenses.

The latest tender helped introduce a new player, Digi, in Hungary's so far three-player mobile market, Monika Karas, president of the authority said at a news briefing.

Magyar Telekom Nyrt. (MTELEKOM.BU) majority-owned by Germany's Deutsche Telekom AG (DTE.XE) will pay HUF58.65 billion for its share of packages; a subsidiary of Norway's Telenor ASA (TEL.OS) HUF31.7 billion; a unit of Vodafone Group PLC (VOD) HUF30.2 billion and cable and new market particpant satellite television and internet provider, Digi, HUF10 billion.

The latest licenses would be available until 2034.

Hungary offered the unused parts of the 800, 900, 1,000 and 2,600 Megahertz frequencies as well as the unused part of the 26 MHz frequency in nine packages.

The amount generated at the tender is largely in line with the HUF120 billion to HUF150 billion that was estimated from the sale in the 2014 budget.

The sale of the licenses may help increase competition, accelerate the development of broadband coverage, the spread of modern wireless services, and lead to competitive consumer prices, the NMHH said.

Write to Veronika Gulyas at [e-mail]; Twitter: @VeronikaGulyas1