Government could announce 900MHz mobile auction this week

The government of Hungary could make the announcement concerning its planned auction of a fourth mobile licence before the end of this week, Dow Jones Newswires reports citing local daily Nepszabadsag as the source. The tender for rights to offer services in the 900MHz band are designed to find a new market entrant to compete with incumbents Magyar Telekom’s T-Mobile Hungary, Telenor Hungary (formerly Pannon) and Vodafone Hungary. Hungary today adopted new measures modifying the country’s Electronic Communications Act to create a legal basis for the fourth player to launch, and local industry watchers believe a decision vis a vis the auction will follow shortly. It is believed the new entrant will face an uphill challenge to wrest control from the well established trio of cellcos. In addition, it will take three to five years and tens of billions of forints to construct a new national network – no small task given the country’s weak economic position.