NMHH Approves Interconnection of Magyar Telekom and Telenor Networks

Published: 25 February 2015


The National Media and Infocommunications Authority (NMHH) has approved the agreement concluded by Magyar Telekom Nyrt. and Telenor Magyarország Zrt. on the secondary trading (lease) of the 800 MHz band obtained at the broadband frequency tender successfully completed in 2014.

Last year Magyar Telekom and Telenor obtained spectrum licenses for the 790–862 MHz band at the NMHH tender on spectrum licenses for broadband services. On 18 December 2014, the two operators concluded a lease agreement to ensure efficient frequency use, and applied for the permission of NMHH. Within its competence granted by the laws on electronic communications, the Authority has verified compliance with the technical requirements and the regulatory environment, and as of 24 February, approved the execution of the contract on the above secondary trading. The lease agreement on the frequency band signed by the mobile operators expires in 2029 and until such time the parties mutually and partially share spectrum rights with each other.

Compliance with the technical requirements

As a result of their cooperation, the operators offer an 800 MHz LTE mobile phone network to their subscribers that has a larger capacity and better technological characteristics than the one they could offer individually. The technical tests performed by NMHH concluded that the LTE technology selected by the operators complies with the legal requirements specified for the technology, the conditions for band usage and the principles of efficient spectrum usage. Prior to issuing its approval, NMHH also examined whether the joint usage of the frequency blocks and the cooperation agreement endanger any of the individual obligations the operators undertook during the broadband frequency tender regarding roll-out and coverage. NMHH will verify compliance with the obligations undertaken and fulfilment of the contractual obligations during the annual data reporting period.

Regulatory environment of the agreement

Secondary frequency trading receives priority support within the European Union as one of the means to guarantee free competition in the communications market. Competition in the electronic communications market takes place on two levels: on the level of the networks’ infrastructure and the services offered on such network infrastructure. As a result of the EU principle of shared frequency use, Hungarian regulations permit secondary frequency trading.

NMHH has no competence to examine the competition law aspects of the lease agreement. Therefore, considering the competition law aspect of the lease agreement, NMHH sent its decision to the Hungarian Competition Authority for information purposes after the decision was made.