Hungary holds 5G auction with Magyar Telekom, Telenor and Vodafone winning licences

Hungary

In a 5G auction held in Hungary on 26 March 2020, Magyar Telekom, Vodafone Hungary and Telenor Hungary came out on top acquiring 15-year licences for spectrum in the 700MHz, 2100Mz and 3600Mhz bands.

The detailed results of the auction are summarised below:

 

700 MHz frequency band

2100 MHz frequency band

2600 MHz frequency band

3600 MHz frequency band

Magyar Telekom

2 × 10 MHz

2 × 10 MHz

-

120 MHz

Telenor

2 × 5 MHz

-

-

140 MHz

Vodafone

2 × 10 MHz

2 × 5 MHz

-

50 MHz

No bids were submitted for the 2600 MHz frequency band.

The auction was conducted by the National Media and Infocommunications Authority (NMHH) only a day before Hungarian authorities issued a government decree, imposing tight restrictions on the activities and movements of Hungarian citizens in response to the COVID-19 epidemic. As a result, bidders received protective medical equipment and close medical supervision during the auction.

The tender winners listed above have acquired usage rights in three frequency bands for 15 years for a total value of HUF 128,490,000,001 (approximately EUR 363 million). 

The NMHH decided to hold the auction due to heavy market interest for its 700MHz, 2100MHz, 2600MHz and 3600MHz frequency bands for wireless broadband services supporting 5G mobile technology.

During the opening procedure of a tender on 11 March, high demand prompted the authority to schedule an auction. On 24 March 2020, the actual auction was preceded by a trial auction where bidders could familiarise themselves with the bidding process and the auction methodology. The three participating service providers made bids for only those frequency blocks they wished to acquire within the respective frequency band.

Mobile services can only be provided in the 700 MHz frequency after television broadcasting was moved from this band on 6 September 2020.

The tender winners’ right of use will expire in 2035. The 15-year licencing period may be extended once for an additional five years with unchanged conditions and without paying an additional one-time fee for the use of the frequencies.

Through the sale of these spectrum parts, Hungary has gained competitive advantage internationally with 5G-backed innovations in the industrial, healthcare, agricultural, transportation and logistics sectors now within reach.   

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