The Hungarian Communications Market Developments and ...

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purposes of WMAN, which was completed by a study on the use of
these bands. The Authority has also prepared for the opening of the
3.5 GHz “midband”.
The tender for the UMTS spectrum license took place in 2004.
During the preparation phase, the Authority also took measures
to provide access to GSM, DCS and UMTS bands, which may be
necessary for the operation of a potential fourth mobile service
provider. Although a fourth service provider failed to obtain a license
for frequency use in 2004, in addition to the three GSM/DCS service
providers purchasing the UMTS license at that time, the frequency
remains to be available for a fourth entrant.
In 2007, mobile service providers’ GSM licenses for band usage
starting their operation in 1993 was extended to 2016, subject to the
condition that such service providers pay a one-off fee of net HUF
10 billion and invest net HUF 20 billion in Hungary over the next two
years, in addition to their originally planned developments. Following
such development, mobile broadband services will be available in
every town of a population of 1,000 people or more, representing 90
percent of the territory of Hungary and 98 percent of the population.
On 22 October 2008, invitations to tender to facilitate the market
entry of new service providers were announced with the aim of
boosting competition in the mobile telephone market and increasing
the coverage of broadband Internet services. The two tenders are
to facilitate the market entry of a mobile service provider and a wireless
radiocommunication service provider in the GSM/UMTS range
(900/1800/2100 MHz) and the 450 MHz range, respectively.
Five invitations to tender were announced for the 26 GHz microwave
wideband connections. The entry of new mobile service providers and
the simultaneous opening of the 26 GHz frequency range may significantly
increase competition in the market of mobile and broadband
Internet services, whilst greatly improving Internet coverage in lessfavoured
regions of the country, including sparsely populated areas.
The so-called WAPECS principle 18 is an essential element of the
EU spectrum reform. Along this principle, full technology and service
neutrality of terrestrial radiocommunication is to be ensured in certain
frequency bands. Through the implementation of the WAPECS
principle, broadband Internet access systems may become mobile
to enable the provision of a wide range of services (e.g. broadband
Internet transmission and programme transmission). In order to
implement the WAPECS principle, the Authority made the 3.5 GHz
broadband transmission band accessible by fully guaranteeing technology
neutrality. With this step, the future introduction of mobility
(e.g. mobile WiMAX) has already been prepared.
The most efficient means of selling frequencies is by auctioning.
The multi-player international market expects modern and efficient
market management. An essential procedure of primary spectrum
trade is the so-called “parallel auction”. Within the framework of preparatory
work, the development of auction methodology has started:
the Authority has defined the basic technical specification data for
a multi-purpose electronic remote auction system and prepared the
document describing this system.
Broadcasting
With the purpose of satisfying broadcasting needs and ensuring
undisturbed operation, the Authority continuously performs activities
concerning the planning, international coordination, putting into service,
and tendering of broadcasting stations, as well as the protection
of the broadcasting market, as laid down in Rttv. 19 and Eht.
In connection with the introduction of digital broadcasting, the Authority
has examined the possibilities of implementing the GE’06 20 plan,
identified the locations and channels where switching of channels or
power increase is required, and, if necessary, initiated international coordination
procedures. In order to prepare for T-DAB 21 band allocations,
as laid down in the GE’06 plan, the Authority has elaborated theoretical
assignments in connection with the frequency zones and, in accordance
with the procedural rules of GE’06, started international coordination
as regards the conversion of allocations to assignments.
In order to prepare for the introduction of digital broadcasting in
Hungary, the Authority has held continuous coordinating consultations
with the representatives of foreign organisations falling within the zone
of coordination. As a result of this work, coverage indicators increased
to 94, 82 and 81 percent for the first three multiplexes, respectively.
The plans of the national DVB-T transmission network comprising
some sixty transmitters have been completed. With reference to announcing
the digital broadcasting tender, the Authority has developed
the technical requirements for frequency use.
The tendering procedure as regards national digital television and
radio multiplexes took place in 2008. In the two separate tenders,
Antenna Hungária (AH) acquired the operating license for five television
multiplexes and one radio multiplex for 12 years. Of these multiplexes,
AH will start broadcasting the radio multiplex, television multiplexes “A”
and “C” as well as “B” as part of mobile television service as early as
in 2008, whilst service is scheduled to start in multiplexes “D” and “E”
after the termination of the current analogue terrestrial broadcasting in
2011. After complete rollout of the network, DVB-T television multiplexes
will reach 96 percent of the population, and population coverage
of 94 percent is anticipated in the case of the radio multiplex.
The introduction of terrestrial digital television service is expected
to boost competition and broaden market supply. Simultaneously, it
will contribute to the fact that in the future a higher quality and wider
selection of programmes than today will be available to about 20
to 25 percent of Hungarian households currently having television
transmission through indoor or rooftop aerials.