Announcement regarding GSM/UMTS, 450MHz and 26GHz Spectrum Tenders in Hungary

2008. március 25.

  1. The National Communications Authority of Hungary (Nemzeti Hírközlési Hatóság or NHH), the national regulatory authority responsible for civil frequency management in Hungary, hereby announces international invitation for tenders with respect to the right to use certain frequencies for (I) mobile (GSM/UMTS) radiocommunications services (the “GSM/UMTS Tender”), (II) wireless (450 MHz) radiocommunications services (the “450 MHz Tender”) and (iii) microwave interconnection (26 GHz) (the “26 GHz Tender”).
  2. Object of the GSM/UMTS Tender is the right to use of first a 2x8.2 MHz wide duplex E-GSM (900 MHz) band, second a 2x15 MHz wide duplex DCS (1800 MHz) band, third a 2x15 MHz wide duplex UMTS FDD band and a 5 MHz wide UMTS TDD band, reserved for GSM/UMTS services under Government Decree No. 346/2004. (XII. 22.) on the national allocation of frequency bands (the “FNFT”) and Decree of the Ministry of Informatics and Communication No. 35/2004. (XII. 28.) on the rules of using frequency bands (the “RAT”) and internationally coordinated, for a period of 15 years.
  3. Object of the 450 MHz Tender is the right to use a 2x4.3 MHz wide duplex frequency block around the 450 MHz frequency band reserved for national public wideband digital cellular radiocommunications services under the FNFT and the RAT, for a period of 15 years.
  4. Objects of the 26 GHz Tender are the rights to use two (2) 2x112 MHz wide (the “C block” and the “G block”), one (1) 2x84 MHz wide (the “D block”) and two (2) 2x56 MHz wide (the “E block” and the “F block”) duplex frequency blocks used for microwave links under the FNFT and the RAT, for a period of 10 years.
  5. Special conditions of participation. In addition to the general conditions of participation as set forth by the legislation in force and the documentation, the special conditions to participate in the tenders with respect to the right to use each frequency block are as follows:
    (I) Electronic communication service providers providing mobile radiocommunications services as of September 1, 2008 in the territory of the Republic of Hungary (the “incumbent mobile operators”) or its affiliated companies, or (ii) companies or other entities under the indirect or direct control of the Hungarian state, may not participate in the GSM/UMTS Tender or the 450 MHz Tender.
    With respect to the C block, exclusively the joint consortium of an incumbent mobile operator and a participant of the GSM/UMTS Tender that submitted a valid bid for the GSM/UMTS Tender may participate in the tender. With respect to the D block, there are no special conditions to participate in the tender. Incumbent mobile operators or their affiliates may not participate in the tender regarding the E block. With respect to the F block and the G block, exclusively a participant in the GSM/UMTS Tender and/or the 450 MHz Tender may participate in the tender.
  6. License fees. Winners of the GSM/UMTS Tender and the 450 MHz Tender will be obliged to pay a license fee consisting of (I) a fixed fee of at least HUF 100,000,000 (one hundred million Hungarian forints) and (II) a yearly revenue proportionate fee of at least 0.75% (point seventy-five percent) in accordance with further provisions of the tender documentation. The winner of any of the frequency blocks of the 26 GHz Tender will be obliged to pay a fixed license fee, optionally in more installments, in accordance with further provisions of the tender documentation. The minimum license fee in case of the C block is HUF 0 (zero Hungarian forints), and in case of the D block HUF 500,000,000 (five hundred million Hungarian forints). In case of the E, F and G blocks, the minimum license fee consists of at least two installments, one in a minimum amount of HUF 50,000,000 (fifty million Hungarian forints), and the subsequent installment(s) in a minimum amount of HUF 50,000,000 (fifty million Hungarian forints) to be paid within 36 (thirty-six) months from the payment of the first installment. Counter-offers may be given with respect to the amount of the license fees and the installments. The issuer of the tender reserves the right to amend the above minimums in accordance with the provisions of the documentation. The above amounts are exclusive of applicable VAT.
  7. The tender procedure will be conducted in accordance with Hungarian Act CXL of 2004 on the general rules of administrative proceedings and services, Hungarian Act C of 2003 on electronic communications, and Hungarian Government Decree No. 11/2003 (I. 30.) on rules of frequency auctions and tenders, as well as the tender documentation belonging to this tender invitation. The tender is otherwise governed by Hungarian law.
  8. The tender documentation is available between October 22, 2008 and November 19, 2008, under the address at the registered seat of the NHH (H-1015Budapest, Ostrom u. 23-25), room 315 during the business hours. The tender documentation constitutes an inseparable part of this tender invitation. The tender documentation may be obtained if (I) certification is presented of the bank transfer of HUF 1,000,000 (one million Hungarian forints) exclusive of applicable VAT to the appropriation frame account of the NHH at the Hungarian State Treasury number 10032000-00287247-00000000, the purchase price of the tender documentation, indicating the title of payment (as “documentation purchase price”), (II) an authorization signed in front of two witnesses or a notary is presented authorizing the attending party to obtain the tender documentation and sign a non-disclosure agreement on behalf of the entity indicated on the document attesting the transfer of the purchase price of the tender documentation, (III) such duly authorized person signs the non-disclosure agreement. The purchase price of the tender documentation will not be refunded for any reason. The tender documentation may only be transferred upon the prior written consent of the NHH.
  9. Planned schedule of the tender procedure. The NHH plans to host a pre-bid consultation on October 31, 2008. Participants that will have purchased the tender documentation will be informed regarding the exact location and time of the pre-bid consultation in writing. The bids may be submitted on November 20, 2008, between 9.00 and 12.00 a.m. at the registered seat of the NHH (H-1015 Budapest, Ostrom u. 23-25.). The results of the tender procedure is planned to be announced on December 22, 2008 in case of the GSM/UMTS and the 450 MHz Tender and on January 30, 2009 in case of the 26 GHz Tender, at the earliest.
  10. Disclaimer. The purpose of this announcement is to publicly announce this tender invitation. Thus, this announcement may not be interpreted as replacing the tender documentation, which provides the detailed rules of the tender. The NHH reserves the right to amend the tender documentation. If such an amendment affects the contents of this announcement, then the NHH will publicly announce the amendments in a manner identical to the present announcement.