On August 4, 2011, the Office of the National Media and Infocommunications Authority, Hungary (the “Authority”) announced an auction for the right of use of a total amount of 10.8 MHz of unused spectrum related to the provision of mobile telecommunications services in the 900 MHz frequency band. The spectrum can be utilized in a technology-neutral manner, allowing for the installation and operation of GSM, UMTS, LTE and/or WiMAX mobile networks. As announced, Magyar Telekom filed an auction bid on December 8, 2011.

On January 31, 2012, Magyar Telekom received from the Authority the first instance, non-final decision closing the auction.

Pursuant to the first instance decision, Magyar Telekom won the right of use of two duplex frequency blocks of 1 MHz each (one EGSM-band duplex frequency block of 1 MHz plus one PGSM-band duplex frequency block of 1 MHz) for a period of 15 years. Pursuant to the first instance decision, Magyar Telekom is required to pay an auction price of 10.9 billion HUF + VAT for these frequency blocks.