State-backed consortium to enter Hungarian mobile market, report says

Dow Jones Newswires, quoting Hungarian business daily Napi Gazdasag, reports that a group of three state-owned companies are forming a consortium in a bid to become the fourth operator in the domestic mobile market. The article claims that the consortium includes postal operator Magyar Posta, power utility MVM and development bank MFB. Magyar Posta will apparently control 10% of the new consortium, with the other two firms each holding 45% stakes. If realised, the newcomer is looking to spend HUF115 billion (USD515.7 million) over the next five years as it looks to secure an 11% share of the market by 2017. The government of Hungary is planning to conduct an auction for the mobile frequency licence in January, and applications to participate are to be submitted Thursday.