Press Releases

Budapest, November 8, 2007 13:15

Magyar Telekom renewed its mobile concession contract for use of the 900 MHz frequency that expires on November 4, 2008 for an additional term of seven and half years according to an agreement with the Ministry of Economy and Transport. Simultaneously with the agreement the telecommunications company agreed to carry out large-scale investment projects to further increase mobile broadband coverage.

The lengthy negotiations between Magyar Telekom and the National Communications Authority acting on behalf of the Ministry of Economy and Transport have closed with success; the concession contract for use of the 900 MHz frequency band remains in force after November 4, 2008 for an additional term of seven and half years. In addition to payment of the HUF 10 billion concession fee Magyar Telekom has undertaken to spend at least HUF 20 billion in the following two years on further increase of mobile broadband coverage in Hungary.

The success of negotiations was facilitated to a great extent by the fact that the representatives of Magyar Telekom and the Ministry of Economy and Transport held the same views about the major issue throughout the negotiations: they agreed that development of mobile broadband services accessible on a wide area that enables greater than ever freedom is of key importance for the creation of equal opportunities, elimination of digital illiteracy, catching up by disadvantaged regions and thereby creation of a real information society and improvement of Hungary’s competitiveness.

“I am sure that as a result of this fair agreement that is advantageous for everybody, use of high quality mobile broadband services accessible at competitive prices can further speed up in Hungary. The major winners of the negotiations conducted over the last weeks will be those who are the most important for both the Ministry and Magyar Telekom: the consumers, the population of Hungary,” emphasized Magyar Telekom’s Chairman-CEO Christopher Mattheisen in connection with the announcement.  

Right from the start Magyar Telekom considered continuous growth of the number of both fixed and mobile broadband accesses as a priority; accordingly the company has for years been spending significant amounts on construction of the necessary infrastructure and introduction of innovative technological solutions. Because mobile broadband is of determining importance for further increase of internet penetration, T-Mobile was the first, on May 17, 2006, to start construction of a 3G/HSDPA-based broadband network that will make its broadband service accessible in 118 localities by the end of the year.