­Hungary's telecoms regulator, the National Communications Authority (NHH) has issued a tender for two new 15-year mobile licenses and a 3rd tender for mobile infrastructure development. One of these new operators can obtain a frequency set similar to that of the three existing mobile operators. The other applicant is in competition for the authorisation to use the 450 MHz frequency range that is currently not in use.

The regulator said that this service could lead to a significant improvement in the wireless broadband internet coverage of sparsely populated regions and villages.

The NHH has also announced another five packages regarding the use of the 26 GHz frequency range. This range could play a crucial role in the development of the internal infrastructure of mobile operators and other market players as well as large corporations for example; furthermore, it could contribute to expanding current levels of wireless broadband Internet coverage in Hungary.

"The appearance of new mobile operators and the simultaneous opening of the 26 GHz frequency range could significantly strengthen competition on the mobile and broadband Internet markets, and could largely increase Internet coverage in disadvantaged regions of the country such as sparsely populated areas" said Dániel Pataki.

Today in Hungary, there are 116.4 mobile phone subscriptions for every 100 persons and 40 broadband Internet subscriptions per 100 households. The ratio of ADSL and cable modem Internet accesses are gradually becoming more even, while domestic and European experience shows that in the future wireless solutions offering mobility will play an increasingly important role on the broadband Internet market.

It is the opinion of NHH that the intensity of competition on the mobile market has weakened in recent years, while at the same time there are great opportunities in the field of wireless Internet.

A new nation-wide operator could appear in the 450 MHz frequency range that could primarily improve broadband Internet coverage in smaller regions and villages through a network the instalment of which could be economical even in that environment. This potential new operator will be required to start up its services within two years and to achieve at least 30 percent territorial coverage in three years.

The winner of the 900-1800-2100 MHz frequency package - currently also out of use - will be a full spectrum mobile operator with the opportunity to develop a complete, that is, second and third generation network. This operator will be required to establish a network within three years that covers at least 35 percent of the population.

The tender promotes economic frequency use and cooperation among current and potential new operators, and is based on joint assumption of risk by the state and operators. This means that with low entrance thresholds and strict warranty criteria, tender applicants must undertake payments primarily from their revenues during the period of authorised frequency use.

The 26 GHz tender has been announced by the NHH in five different packages. Market players may apply separately for the various packages. Some of the tenders allow current Hungarian mobile operators to participate along with those planning to enter the market and other enterprises. The 26 GHz tender is looking to strengthen the willingness of operators to cooperate with each other; therefore, one of the packages can only be won jointly by a new and a current mobile operator. The goal of the 26 GHz tender is to develop broadband infrastructure and to speed up the spreading of mobile broadband. The frequency use authorisation for the 26 GHz packages can be won by applicants for a period of ten years through cooperation between new and existing operators and by undertaking a one-off payment.

Source:cellular-news