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Press Releases

Magyar Telekom acquires frequency usage rights

Budapest, January 28, 2021 16:00

Magyar Telekom announces that in the auction procedure for the entitlements of frequency use of the 900 MHz and the 1800 MHz frequency bands it has won the rights of use of the following frequency blocks:

Band  Quantity  Price 
900 MHz 2x8 MHz HUF 18.48 bn
1800 MHz 2x20 MHz HUF 25.8 bn

On October 16, 2020 the Office of the National Media and Infocommunications Authority announced an auction procedure for the entitlements of frequency use of the 900 MHz and the 1800 MHz frequency bands that are currently used by the operators and are due to expire in April 2022. The Company currently holds 10 MHz and 15 MHz duplexes on the 900 MHz and 1800 MHz frequency bands respectively expiring at this date. The auction took place on January 28, 2021.

Magyar Telekom will be entitled for the usage of the above listed frequency bands until 2042 - 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 44.28 billion for these frequency blocks, and this payment is expected to be due in the first quarter of 2022 whereas the present value of this liability is expected to be booked in the first quarter of 2021. The present value of the future band fees related to the acquisition of these frequency blocks is expected to be booked also in the first quarter of 2021, in the amount of approximately HUF 39.5 billion.

“Thanks to our stable telecommunications networks, during the pandemic millions of customers worked, studied and communicated safely, and we realised that every Forint invested into the network was important for the quality of the service. At today's auction we were able to secure frequency rights that will allow our customers to continue to use our mobile services and innovative solutions at the usual high standards. I am confident that with this investment we will not only contribute to the lives of our customers, but also to the economic competitiveness of Hungary”, said Tibor Rékasi, CEO of Magyar Telekom.