On May 22, 2014, the Office of the National Media and Infocommunications Authority announced a tender for the utilisation of currently unused 800 MHz and 2600 MHz frequency bands and for the undistributed parts of 900 MHz, 1800 MHz and 26 GHz frequency bands. As announced, Magyar Telekom filed a tender bid on June 16, 2014.

On September 29, 2014, Magyar Telekom received the Authority’s Decision closing the tender. 

Pursuant to the Decision, Magyar Telekom is entitled to use the above listed frequency bands – considering that by fulfilling the respective conditions the term of rights of use for frequencies is extended by five years – until June 15, 2034. Based on the Decision, Magyar Telekom is required to pay a price of HUF 58.65 billion for these frequency blocks, and this payment is expected to be due in the fourth quarter of 2014. The present value of the future annual band fees related to the acquisition of these frequency blocks will be capitalized in the amount of HUF 36.8 billion in the fourth quarter of 2014.

Magyar Telekom’s frequency holdings with the frequency blocks acquired as part of the Decision includes the following:

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