Disgruntled bidders appeal decision to cancel mobile licence auction

6 Apr 2009

According to a report from MTI-EcoNews, three of the four prospective bidders for Hungary’s combined GSM/UMTS mobile licence have appealed the decision by the regulator, the National Communications Authority (NHH), to cancel the tender because of the global crisis. It is understood the watchdog has received formal appeals from Digi and Mobinet Tavkozlesi Projekt, while a further appeal from Dream Com Tavkozlesi is pending. The fourth bidder in the tender was Invitel Tavkozlesi. The NHH said its decision to abandon the fourth licence tender was based on the opinion that ‘since the announcement of the tender, both the domestic and the international economic environment have deteriorated significantly, which questions the financing conditions and (investment) return projections of the bids.’

TeleGeography’s GlobalComms database reports that in mid-March 2009 the NHH cancelled the tender as it was unwilling to risk the winner failing following the global economic credit crunch. At the start of this year the NHH announced that it had received a higher than expected number of applications for its tenders to increase competition in the mobile market and to increase broadband internet coverage via WiMAX technology. By the 28 November deadline a total of four bids had been received for the so-called bundle ‘A’, which allows a fourth GSM/UMTS service provider to enter the market, exceeding expectations.