Monday, 30 March 2020

Hungary Allocates 5G Spectrum in 700 MHz, 2.1 GHz and 3.6 GHz


The Hungarian regulator NMHH has announced the result of a tender for 5G licences in the country. In a statement, it says that the licences, valid for 15 years in three frequency bands, have been awarded to Magyar Telekom, Telenor Hungary and Vodafone Hungary. It adds that in total the three companies will pay HUF128 billion (€360.4 million) for the rights.

NMHH notes that the bids received by March 11 for the 700 MHz, 2100 MHz and 3600 MHz bands revealed that there was more demand than supply. It therefore held auctions for the blocks offered, subject to strict precautions. The three service providers were able to bid for a number of frequency blocks within each frequency band, starting with the initial bid value specified in the documentation for that band. The auction was preceded by a trial auction on March 24.

Karas Monika, chairman of NMHH, said: “5G frequency services will play a key role in economic development and, in the short term, can effectively support our healthcare network, domestic telework and distance education, even in times of coronavirus restrictions. And in the post-epidemic period, they can accelerate the recovery of the Hungarian economy.”

To this end, NMHH will encourage service providers 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 the internet. hospitals, campuses or major transport routes.

The usage rights of the acquired frequencies will expire uniformly in 2035. The 700 MHz frequency band will only be available once this band has definitively moved out, ie not earlier than September 6, 2020.

The term of the rights may be extended once for a further period of five years, subject to unchanged conditions and without a single additional fee being charged for the right of use of the frequency.


Google translation of the NMHH announcement says:

The March 11 bidding process for the sale of usage rights for the fifth generation (5G) mobile technology and wireless broadband in the 700 MHz, 2100 MHz and 3600 MHz bands revealed that there was more demand than supply, Thus, on March 26, NMHH held auctions of the blocks offered, subject to strict precautions.

This is of paramount importance for the Hungarian economy, as it will give Hungary a competitive advantage over those countries where the most important spectrum parts for 5G services have not yet been sold. After the auction, Hungary will be among the first to take advantage of 5G innovations in, for example, industry, health, agriculture, transport or even logistics. The bidding service providers pay the Hungarian public a significant amount, about HUF 128.5 billion, for the frequency usage rights acquired at the auction, thus ultimately for the Hungarian citizens.

The three service providers involved in the NMHH process were able to bid for the number of frequency blocks within each frequency band , starting with the initial bid value specified in the documentation for that band . The auction was preceded by a trial auction on March 24, where representatives of the service providers, in addition to the sales documentation, were introduced to the auction site and the auction methodology at the auction site.

Due to the well-known epidemic situation, the auction took place under special circumstances. The NMHH provided general health monitoring of the event on site, and the necessary protective equipment for each auction participant. At the event, both the service providers and the authority representatives displayed responsible, disciplined behavior, abiding by the health rules that can be expected in such a situation.

Detailed results

At the auction on March 26, Magyar Telekom acquired 10 MHz twice in the 700 MHz band, 10 MHz twice in the 2100 MHz band and 120 MHz in the 3600 MHz band.

Telenor acquired 5MHz twice in the 700 MHz band, with no success in the 2100MHz band, and 140MHz in the 3600MHz band.

Vodafone acquired 10 MHz twice in the 700 MHz band, 5 MHz twice in the 2100 MHz band and 50 MHz in the 3600 MHz band.

There was intense competition between service providers in the 700 MHz band, while none of the bidders in the 2600 MHz band.

Monika Karas, president of the NMIAH According to "The developing are your 5G-and frequency-sales as a result of services plays a key role will be economic development , even in the short term have been the time constraints associated with the coronavirus can effectively support the operation of the health network, domestic telework and distance learning. In the post-epidemic period, they can accelerate the recovery of the Hungarian economy. "

To this end, NMHH will encourage service providers 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 the Internet. hospitals, campuses or major transport routes.

The usage rights of the acquired frequencies will expire uniformly in 2035. The 700 MHz frequency band will only be available once this band has definitively moved out, ie not earlier than 6 September 2020. 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 being made for the right to use the frequency.

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