5G frequencies sold in Hungary

Magyar Telekom, Telenor and Vodafone have paid HUF 128.49 billion altogether for the 15-year use of bandwidths suitable for 5G standard data transmission.

The bandwidths were auctioned by the National Media and Infocommunications Authority (NMHH) late March. According to the Authority, the auction, held under stringent precautionary measures, saw "intensive competition," although, only the three largest Hungarian mobile service providers took part since Digi had been excluded from the procedure before.

NMHH says the result is "of paramount importance to the Hungarian economy as it will give Hungary a competitive edge over those countries that have not yet sold the key spectrum for 5G services. After the auction, Hungary will be among the first to utilize innovations applicable with the help of 5G technology, in the fields of industry, health, agriculture, transport, or even logistics."

NMHH Chairman Mónika Karas is of the view that, “5G frequency sales will play a key role in economic development, and, in the short term, can effectively support our healthcare network, home telework and distance education, even in times of coronavirus restrictions. In the post-epidemic period, they can accelerate the recovery of the Hungarian economy.” To this end, NMHH will use incentives like reduced tariffs to encourage service providers to install 5G at locations that are not only important to them from a market point of view, but also important to society – places such as hospitals, campuses or major transport routes.

The usage rights of the acquired frequencies will expire in 2035. The 700-MHz frequency band will only be available once this band is freed up by broadcasters, that is, 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 any additional one-off payment being made for the right to use the frequency.

The auction concerned four ranges, of which the most serious bids were made for the 700-MHz one, with rights bought by the service providers in the 2100-MHz and 3600-MHz band, while no bid was received for the 2600-MHz range.