Hungarian state grouping plots mobile challenge to T-Mobile, Telenor and Vodafone
1 February 2012
|
Hungary’s Nemzeti Média és Hírközlési Hatóság (National Media and Infocommunications Authority/NMHH) revealed that four companies are to bid in the country’s upcoming 900MHz spectrum auction (Deutsche Telekomwatch, #1-#3), with T-Mobile Hungary (TMHU) among them.
The sell-off — which is to take place in January 2011, with a total of 10.8MHz, “technology-neutral” frequency rights up for grabs — will see the participation of the market’s incumbents: TMHU; Telenor Hungary; and Vodafone Hungary (VfH).
Also competing for the spectrum will be a consortium of state-owned companies, comprising: development bank Magyar Fejlesztési Bank; energy firm Magyar Villamos Művek; and postal operator Magyar Posta, which has a distribution relationship with Vodafone. Business newspaper Napi Gazdasag reported that Magyar Posta will control 10% of the consortium, and the other two players 45% each.
The NMHH declined applications to participate from: Romanian cable operator RCS&RDS (which operates a mobile virtual network operator on Telenor’s infrastructure, and is a growing Group rival in southern and eastern Europe); and expansive Vietnamese operator, Viettel Group (which was also recently mooted as a potential new rival to T-Mobile Slovakia — Deutsche Telekomwatch, #4).
As outlined by the NMHH in August 2011, three levels of spectrum holdings will go up for sale: a 5MHz ‘A’ block, with a reserve price of HUF 4bn (EUR13m); 1MHz ‘B’ rights reserved at HUF 700m apiece; and 0.8MHz ‘C’ rights at HUF 560m.
It is currently unclear what (if any) restrictions the NMHH will place on the incumbents during the sale — previous reports suggested prospective new entrants will be given some level of priority over at least some of the frequencies.
Consortium criticised
The participation of the state grouping will be a boost to the regulator, which has long been eager to bring a fourth player into the mobile market, but failed to attract sufficient interest to go ahead with a planned auction in 2009.
However, the move raised controversy domestically, in light of the country’s stretched finances, and that government intervention is already a live topic in Hungary, around its recently implemented “crisis” tax on telecoms players (Deutsche Telekomwatch, #1 and #3). Gergely Palffy, a Hungary-based Analyst at KBC Securities, described the consortium’s participation as “unnecessary”, noting that to set up a fourth player would add to strains on the public budget.
[Further reference: Vodafonewatch, passim; Hungarian state firms to enter mobile telecoms market -- Dow Jones, 7 December 2011; Magyar Telekom files auction bid for 900MHz frequency blocks -- MTI, 8 December 2011; Hungary may 'squander' $400 million on mobile provider, KBC says -- Bloomberg, 9 December 2011; Nyilvános a 900 MHz-es sáv árverésére jelentkezők névsora -- NMHH, 9 December 2011; Magyar Telekom, Telenor, Vodafone to bid for Hungary mobile spectrum -- Dow Jones, 9 December 2011; Magyar Telekom, Telenor, Vodafone OK to bid for Hungary mobile spectrum -- Dow Jones, 2 January 2012.]
Central Europe’s communications titan — surveillance, analysis, insight.
A unique monthly report for the industry.
- Deutsche Telekomwatch is the only independent monitor of everything and anything to do with Deutsche Telekom Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
- Covering not just Germany's integrated telcoms leaders and all of its international operating companies, but also its wider interests, including OTE in Greece, Magyar Telekom in Hungary, and much more.
- Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
- A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
- A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
- Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
- Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
- Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.
