Hungary's National Media and Infocommunications Authority (NMHH) recently held an auction for the entitlement to use the 32 GHz frequency band. The auction saw active participation from major telecom companies, including Magyar Telekom, Vodafone Hungary, and CETIN Hungary.
Also Read: Magyar Telekom Expands 5G Coverage to 60 Percent of Hungarian Population
Spectrum Validity
The participating companies collectively bid a total of HUF 970 million for the spectrum auctioned, which will be valid for a period of fifteen years. The auction marks a pivotal moment as it is the first time applicants were able to apply electronically and bid for the lots, starting from the initial bid value specified in the documentation.
NMHH Auctions 32 GHz Frequency Band Entitlements
According to NMHH, the auction procedure, which commenced on 13 March, consisted of two rounds of bidding. The operators had the opportunity to submit their offers and bids using electronic forms specifically developed by the NMHH for this purpose. The available lots included 24 duplex lots, each representing 2x28 MHz of frequencies (uplink/downlink).
32 GHz Spectrum Assignments
After careful evaluation, the NMHH awarded a total of 18 lots to the participating operators. Vodafone emerged as the highest bidder, securing 10 lots and the corresponding 560 MHz of spectrum. Magyar Telekom successfully bid for 6 lots, acquiring 336 MHz of spectrum, while CETIN obtained 2 lots, entitling them to 112 MHz of spectrum.
Telecom Operators Secure Rights for Enhanced Services
The operators will collectively pay approximately HUF 970 million for the radio spectrum acquired in the auction. The NMHH further ensured the formation of user blocks, strategically positioning the contiguous user blocks within the frequency band to facilitate future use of the remaining frequencies without any hindrances.
These entitlements to the 32 GHz frequency band will remain valid until 23 May 2038 and have the possibility of a single extension for an additional five years.
The timely sale of the 32 GHz frequency band contributes to the planned clearance of the 26 GHz frequency band, enabling its future utilization for 5G purposes. This development indirectly promotes the expansion of domestic 5G coverage, a crucial step in advancing the country's telecommunications infrastructure.
The successful auction demonstrates the continued commitment of the NMHH and telecom operators to further enhancing connectivity and advancing technological capabilities in Hungary.
Also Read: 4iG Successfully Completes Vodafone Hungary Takeover
Vodafone Hungary in Domestic Ownership
4iG Nyrt has acquired a 51 percent controlling stake in Vodafone Hungary, the second largest telecom company in Hungary. The Hungarian State has also acquired a 49 percent indirect stake. The agreement values Vodafone Hungary at HUF 660 billion, which is 7.1 times the EBITDA for the financial year ending on March 31, 2022.
This acquisition was made through 4iG's subsidiary, Antenna Hungaria, and marks a significant development in the telecom industry in Hungary.
Additionally, in March 2023, Antenna Hungaria has acquired an additional 19.5 percent stake in Vodafone Hungary through a share swap, increasing its direct controlling stake to 70.5 percent. The Hungarian state indirectly acquired a 25 percent stake in PPF Telecom Group's Hungarian subsidiaries as part of the transaction.
