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Press Releases

Magyar Telekom succeeded in the 5G auction procedure – commercial 5G service to be launched soon

Budapest, March 26, 2020 19:00

In the auction procedure for spectrum licences related to 5G and mobile broadband services Magyar Telekom has won the rights of use of the following frequency blocks:

Band  Quantity  Price (HUF billion) 
700 MHz 2*10MHz HUF 26.0 bn
2100 MHz 2*10MHz HUF 8.44 bn
3600 MHz 120 MHz HUF 19.8 bn

On July 18, 2019 the Office of the National Media and Infocommunications Authority announced an auction for the utilisation of the 700 MHz frequency bands and for the available blocks within the 2100 MHz, 2600 MHz and 3600 MHz frequency bands. The auction took place on March 26, 2020.

Magyar Telekom will be entitled for the usage of the above listed frequency bands until 2040 - provided that by fulfilling the respective conditions the term of rights of use for frequencies is extended by five years. Magyar Telekom is required to pay a total price of HUF 54.24 billion for these frequency blocks, and this payment is expected to be due in the second quarter of 2020. The present value of the future annual band fees related to the acquisition of these frequency blocks will be capitalized in the amount of approximately HUF 33 billion in the second quarter of 2020.

The Company intends to launch its commercial 5G services shortly following the receipt of the above frequency usage rights.