Press Releases

Joint press release of the National Media and Infocommunications Authority (NMHH), Magyar Telekom, Vodafone and Telenor

Budapest, September 6, 2013 11:15

The development of digital economy contributes to a great extent to Hungary's competitiveness. The path to 21st century development is marked by the fact that, in line with the trends of the European Union, the accessibility and availability of data and telecommunication services continue to grow in Hungary as well. Serving this aim is the joint agreement of strategic importance signed today by the NMHH's Chairwoman and the leaders of Hungary’s mobile services providers, creating secure foundations for the dynamic development of the digital economy and, at the same time, constituting an income for the state budget of more than 100 billion HUF from the utilization of frequencies.

The agreements signed in a partnership cooperation with service providers contain all the contract amendments that will guarantee the safe and sustainable growth of the mobile market and, at the same time, will ensure a reliable framework for the encouragement of further investments in the industry. An additional benefit of the agreements stipulating the conditions of frequency use until April 2022 creates adequate basis for the leading edge harmonization of interests of both the NMHH, exercising the state's ownership rights, and the mobile service providers that assume a strategic role in our country's digital economy, as well as of millions of customers.

According to the former official contracts the license of Magyar Telekom, Telenor and Vodafone to use frequencies in the 1800 MHz frequency band would have lasted until October 7, 2014, while the 900 Mhz band could have been used by Vodafone until October 8, 2014 and by Telenor and Magyar Telekom until May 4, 2016. Now, in the framework of the agreements signed, NMHH's Chairwoman and the service providers agreed jointly to extend the date when the use of the respective frequencies would expire and, at the same time, harmonized them so that the authorisation of the three Hungarian mobile services providers should be valid for using the 900 and 1800 Mhz frequencies universally until April 7, and, respectively, April 8, 2022.

The extension of the use of frequencies and the harmonisation of the date of their expiry will provide an unprecedented predictability and transparency for the development of Hungary’s mobile market. Another important aim of the NMHH has been that the coverage and capacity enhancement of mobile broad band services and, thus, of competition in the market should be given yet another new impetus by the agreements of strategic importance signed in a cooperation of partnership with service providers. Contracting parties expressed their agreement that all this serves the vital interests of the whole Hungarian society and the national economy also, as it contributes to increasing the consumer's wellbeing and the competitiveness of Hungarian businesses, as well as it has a positive effect on the sustainable development of the economy.

The current official contract amendments also open up the path to the utilization of the 800 MHz frequency pool, which is being liberated in the wake of the Digital Switchover. As for leveraging additional frequency assets exclusively owned by the NMHH and not subject to the agreements signed, NMHH will start still within this year its auction procedure according to its spectrum strategy and current plans.