Hungary

[HU] Awarding of UMTS-licenses

IRIS 2005-1:1/30

Gabriella Cseh

Budapest

Five service providers submitted their applications by the deadline of 2 November 2004 in accordance with the tender procedure initiated by the Nemzeti Hírközlési Hatóság (National Communications Authority, NHH) for the license of radio frequency bands that can be used for the provision of third generation mobile communication services (UMTS) (see IRIS 2004-9: 11). The UMTS technology improves the quality of traditional mobile telephone calls, provides higher data speed, and thus also makes available internet-based multimedia services. Each of the three current Hungarian GSM service providers ­ Pannon GSM Távközlési Rt., T-Mobile Magyarország Távközlési Rt. and Vodafone Magyarország Rt. ­ has submitted applications for the three blocks reserved for them. For the fourth block which is open to new entrants, the Danish telecommunications company TDC submitted tion the Swedish company Tele2 applied through its Hungarian office opened during this year. According to the President of the National Communications Authority competition in the Hungarian telecommunications market is intensifying. That means that the new electronic communications act, that entered into force in January 2004 (Act no. C of 2003) achieved one of its chief objectives. He says that the large number of applicants indicated that there was great interest in entering the relevant market. It also showed trust in the Hungarian market and the relevant legal environment. A 15-year license period is envisaged for the frequency blocks of the auction. The tender ensures for consumers the availability of the third generation mobile telephone service as of January 2006. The tender process had been carried out in compliance with Act C of 2003 on electronic communications and the government decree on the rules of the auction and tender for obtaining frequency licenses, as well as the provisions of the tender documentation. According to the time schedule of the tender, the authority was expected to announce winners in December 2004.