Hungarian regulator extends mobile licences

Hungarian telecommunication regulator NMHH has extended until April 2022 the mobile frequency licences of Telenor, Vodafone and Magyar Telekom. The licences for the 1800 MHz frequency band were to have expired on 7 October 2014, while the licences for the 900 MHz band would have expired on 8 October 2014 (Vodafone) and 8 October 2016 (Telenor and Magyar Telekom). The licence renewal will cost the operators in total HUF 100 billion. The regulator plans to announce a tender for the remaining part of the 900 MHz frequency by the end of this year, reports telecompaper.

Magyar Telekom said the extension of its licences will cost HUF 38 billion, although it will pay only HUF 34 billion as the licence for one of the spectrum blocks was shortened from 2027 to 2022. The company said its annual spectrum fees also will decrease by approximately HUF 3.8 billion between 2014 and 2022 – told telecompaper.com.
Telenor said its extension costs HUF 27 billion, although part of this will be refunded as its licence won in the 2012 auction was also shortened. As part of the agreement, the annual spectrum fees payable by Telenor Hungary will be reduced by approximately HUF 2 billion per annum.

The NMHH and operators also signed an agreement with the aim of developing the digital economy in Hungary. The agreement will guarantee sustainable growth in the mobile market and ensure a reliable framework for the encouragement of further investments in the industry, the regulator said.