Hungary's telecom authority NMHH announced the results of the tender for renewing licences in the 900 MHz and 1800 MHz frequency bands. Magyar Telekom, Telenor Hungary and Vodafone Hungary bid HUF 150.2 billion (EUR 418 million) in total for the fifteen-year licences.
Magyar Telekom took 16 MHz in the 900 MHz band and 40 MHz in the 1,800 MHz band. Telenor was the highest bidder with 26 MHz in the 900 MHz band and 40 MHz in the 1,800 MHz band. Vodafone acquired 2x9 MHz in the 900 MHz band for HUF 22.7 billion and 2x20 MHz in the 1,800 MHz band for HUF 26.4 billion.
For the spectrum purchased at the auction, the service providers shall pay HUF 150.2 billion in total to the Hungarian government budget. The lots of 900 MHz were sold for HUF 73.8 billion, and the lots of the 1,800 MHz band cost HUF 76.4 billion.
The entitlements are valid for fifteen years, until 9 April 2037, from the existing expiry date of April 2022. The licence period can be extended by five years. In connection with the auction, Monika Karas, the President of NMHH, stated that the timely sale of the bands was necessary for the continuity of Hungarian mobile services, and furthermore, during the coronavirus pandemic, mobile technology had become even more paramount.
Vodafone Hungary's participation
Vodafone Hungary said it will use the re-acquired frequencies to increase the capacity needed for faster mobile internet and better voice quality. Vodafone Hungary already had spectrum in the 900 MHz and 1,800 MHz bands, so the service provider's aim was to extend their validity in the auction, thus ensuring the service continuity. In addition, these frequencies are key to further increasing the capacity of Vodafone 4G services.
