Following a consultation focused on the position of the broadband market, user requirements and the spectrum assets available for use, Dr. Monika Karas, President of the National Media and Infocommunications Authority (Authority) instructed the Office of the Authority to launch the next phase of the frequency utilisation project, and commence bidding for the available frequency bands.

As has been reported, thanks to the strategic cooperation between the Authority and mobile operators, in September 2013 the first phase of the frequency tender was concluded successfully. The spectrum rights of the three Hungarian mobile operators in the 900 and 1,800 MHz frequency bands were  were extended uniformly until 2022, with the contract expiration dates harmonised for all three operators. After the conclusion of Phase I of the frequency tender, President of the Authority Dr. Monika Karas requested the Office of the Authority to work out, for the next phase of the frequency tender, a development-focused spectrum licensing concept that encourages bidders to provide, as soon as possible, up-to-date, broadband wireless services in those parts of Hungary that have no coverage as yet.

In the context of the forthcoming, second phase of the frequency project, the Office of the Authority is to announce a tender for the unused frequency blocks in the 800 MHz, 900 MHz, 1,800 MHz, 2,600 MHz and the 26 GHz frequency bands. As the Authority considers all market participants involved in the development of the Hungarian digital economy strategic partners, before the publication of the final tender notice it will publish the draft tender documentation prepared by the Office team under the leadership of Péter Vári, Deputy Director-General. The Office is inviting comments from mobile operators.

The sale of the spectrum rights of currently unused frequency bands is expected to heighten competition, accelerate the implementation of broadband coverage, promote the wide-spread use of up-to-date wireless services, and facilitate the emergence of competitive consumer prices. Public procurement, as a form of sale, allows the Contracting Authority to include mobile operators’ commitments in respect of network building as an evaluation criterion, which could not be otherwise taken into account in an auction procedure, where the only criterion to consider is the fee to be paid.

A successful tender could give a boost to the development of the Hungarian digital economy, provide a predictable framework for mobile market developments, and enable users to access high-quality data and telecommunications services in an expanded range of locations. The draft tender documentation is available for download both in Hungarian and in English from the website of the Authority.