Hungary raises HUF 130.6 billion in mobile spectrum auction

News Wireless Hungary 29 SEP 2014
Hungary raises HUF 130.6 billion in mobile spectrum auction
Hungary has raised a total HUF 130.6 billion (EUR 418 million) in the award of mobile spectrum in the 800, 900, 1,800 and 2,600 MHz frequency bands. This will help expand LTE services to new frequency ranges and auction off the remaining lots in the 900 and 1,800 MHz bands. 

Magyar Telekom will pay HUF 33.2 billion for lot A, including two blocks of paired spectrum in the 800 MHz band and one lot in the 2.6 GHz band. It also acquired two lots of 2x5 MHz in the 1,800 MHz band for respectively HUF 10.4 billion and HUF 15 billion. 

Telenor Hungary acquired lot B with two paired blocks in the 800 MHz band and one lot in the 2.6 GHz band, for a total HUF 31.7 billion. Telenor said it has agreed under the new licences to bring LTE to 96 percent of the population within five years. The operator plans to invest HUF 15-20 billion in its 4G roll-out in the next three years. It will complete coverage in the next few months before expanding to the rest of the country and doubling speeds to up to 150 Mbps. 

Vodafone Hungary will pay HUF 27.2 billion for lot C, also with two blocks in the 800 MHz band and one unpaired block of 25 MHz in the 2.6 GHz range. In addition, Vodafone acquired a paired lot in the 2.6 GHz band for HUF 3 billion. The operator said it will be able to deploy the new frequencies very quickly, as it's network is already upgraded. This will take it to over 98 percent 4G coverage. 

The fourth winner in the auction was Digi Telecommunications, owner of RCS & RDS in Romania. It will pay HUF 10 billion for 2x5 MHz in the 1,800 MHz band, making it the fourth mobile operator in the country. Hungary's National Media and Communications Authority (NMIAH) welcomed the arrival of a fourth player, saying it should reinvigorate competition. The winning bidders will have until 09 October to pay for the licences, which will be valid until 2034. 

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