Magyar Telekom, Telenor Hungary and Vodafone Hungary paid a total of HUF 128.5 billion (EUR 363 million) for 15 years of usage rights for the 700 MHz, 2,100 MHz and 3,600 MHz bands in telecom authority NMHH's latest auction. Due to the epidemic situation, the 5G auction took place under special circumstances.
Magyar Telekom won two 10 MHz blocks in the 700 MHz band for HUF 26.0 billion, two 10 MHz blocks in the 2,100 MHz band for HUF 8.44 billion and 120 MHz in the 3,600 MHz band for HUF 19.8 billion. The operator said it expects to pay for the spectrum in Q2 and start commercial 5G services shortly after receiving the rights.
Telenor Hungary acquired two 5 MHz blocks in the 700 MHz band and 140 MHz in the 3,600 MHz band, but had no success in the 2,100 MHz band. Telenor launched a 5G test network last year already and said it plans to expand its capacity further thanks to the new spectrum rights.
Vodafone acquired two 10 MHz blocks in the 700 MHz band, two 5 MHz blocks in the 2,100 MHz band and 50 MHz in the 3,600 MHz band. Vodafone Hungary said it paid HUF 38.65 billion for its spectrum. With these newly acquired spectrum bands suitable for boosting speed, capacity and coverage, the operator said it's in good position to continue its 5G roll-out and efforts to digitalise Hungary.
There was intense competition between service providers in the 700 MHz band, while none of the bidders were interested in the 2,600 MHz frequencies offered, the regulator said. NMHH said it will encourage operators to install 5G at locations that are not only important to them from a market point of view, but are also socially important - such as hospitals, campuses and major transport routes.
The usage rights for the acquired frequencies will expire uniformly in 2035. The 700 MHz frequency band will only be available once broadcasting is removed from this band, not earlier than 6 September, while the other spectrum should be available as early as April. The term of the rights may be extended once for a further period of five years, subject to unchanged conditions and without any additional one-off payment.
Vodafone Hungary was the first among Hungarian mobile operators to launch its live commercial 5G service in 2019, in downtown of Budapest and at the ZalaZone Automotive Proving Ground, thanks to its 3,600MHz frequency spectrum acquired in 2016. The commercial 5G network in Budapest runs on a total of 34 5G base stations.
Hungary's fourth mobile operator Digi has also launched 5G services. However, it was excluded form participating in the spectrum auction.
