NHH has extended the submission deadline of certain of its tenders

27 November 2008

A Nemzeti Hírközlési Hatóság (NHH) 15 nappal meghosszabbította a két új szolgáltató piacralépését is lehetővé tevő mobil- és frekvencia-pályázatai egy részének beadási határidejét, a frekvenciasávok felhasználási szabályait rögzítő miniszteri rendelet módosítása miatt.

The amendment of the submission deadline took place with the approval of Minister of Transport, Telecommunication and Energy Pál Szabó.

According to the amendment of the decree, published on Thursday, those companies may also bid on frequency bundle "A” which enables the market entry of the GSM/UMTS mobile service provider, that possess the frequency utilisation rights to the 3.5GHz bandwidth.

The amendment of the submission deadline, in addition to bundle "A" concerning the 900/1800/2100MHz frequencies, affects the 26GHz bundles that are inseparable from the above, that is the "C”, "F” and "G” bundles. With these bundles the submission deadline is: December 12, 2008.

The bids for the tenders issued for bundle "B” concerning the utilisation of the 450MHz frequency and for the additional two 26GHz bundles ("D”, "E”) have an unchanged deadline, they must be submitted by November 28.

NHH announced the tenders in the interest of increasing competition in the mobile telephone market and to increase broadband internet coverage.

In the event that the tenders are effective, up to two new mobile telephone service providers may appear in the Hungarian market, having acquired frequency utilisation rights for up to 15 years. The winner of the "A” bundle may acquire a similar frequency inventory at the tender as the three mobile service providers currently on the market. In turn, the winner of the "B” bundle will primarily be able to improve the wireless broadband internet coverage of sparely settled areas and communities. The 26GHz frequency bandwidth may play an important role in the development of the internal infrastructures of mobile service providers as well as other market actors or large corporations, and may contribute to the significant growth of domestic wireless broadband internet coverage.

Thus far 14 companies have purchased the invitation to tender.

The main elements of the GSM-DCS-UMTS and 450MHz tenders:

Packages „A” „B”
Frequency 900/1800/2100MHz 450 MHz
Frequency use authorisation 15 + 7.5 years
Who can apply?
Exclusions:		 • Company under direct or indirect state ownership
• Incumbent mobile or company in the same company group
• Cross-ownership between applicant "A” and "B”
Minimum obligations Start up of service within 2 years, 35% residential coverage within 3 years Start up of service within 2 years,
30% territorial coverage within 3 years
Minimum fee HUF 100 million + at least 0.75% of annual net revenue
Evaluation criteria
  • Revenue-proportionate fee: 60 points
  • Coverage and service start up obligation: 20 points
  • Experience: 10 points
  • Business plan: 10 points

 

The main elements of the 26 GHz tender:

Packages „C” „D” „E” „F” „G”
Bandwidth 112MHz 84MHz 56Mhz 56 MHz 112Mhz
Who can apply? Incumbent mobile operator with participant  of tender "A” Anyone Anyone with the exception of  incumbent mobile operator Winners of tenders "A” and "B”
Minimum fee - HUF 500 million HUF 100 million
Frequency use authorisation 10 + 5 years
Evaluation criteria
  • Fixed fee: 90 points
  • Business plan and background: 10 points