Wireless Spectrum for Sale in Hungary

Hungary is planning on selling licenses for portions of its wireless spectrum. NMHH, Hungary’s version of the U.S. FCC, will allow the sale of the 800 MHz, 900 MHz, 1800 MHz, 2.6 GHz and 26 GHz frequency bands. 

Who Would Use These Frequency Bands? 
The 800 MHz frequency range is primarily used by public safety groups like fire fighters, police and emergency medical technicians. However, portions of the frequency range are also used by private radio systems like commercial trucking dispatchers and construction firms. The 800MHz frequency band has been identified by the EU as best suited to 4G outside of its major cities. 

The 900 MHz is currently popular with wireless phones, though it is also used by amateur radio operators. The 1800 MHz band is shared by Wi-Fi, Bluetooth and television signals. 2.6 GHz is considered part of the microwave band. It is used in radar systems as well as communication networks for satellite radio and mobile TV. The International Telecommunications Union has allocated the 26 GHz band for mobile broadband, especially data heavy content like video downloads. However, the unused frequencies are expected to be snapped up entirely by 4G service vendors. This is one of the reasons Hungary is selling off parts of its radio spectrum. 

Hungary’s Big Sell 
Hungary is selling off part of its spectrum to 4G service providers to hasten the development of 4G wireless network development in the country. If they have their own frequency ranges, they’ll have better bandwidth than they would if competing on frequencies used by market incumbents Maygar Telekom, Vodafone and Telenor. The sale of new frequency ranges will also spur competition in Hungary’s telecommunications market, helping the country meet the 80% 4G coverage goal. Today, only 37% of the country has access to 4G coverage. 

Hungary has a financial incentive to sell portions of its spectrum. Like drivers paying to use a toll road, telecom firms pay the Hungarian government for exclusive rights to specific frequency ranges. Hungary expects to earn between $540 million and $600 million for the spectrum auction. And it hopes to see better economic development by promoting the development of more high speed wireless communication capacity and coverage. By selling off portions of the spectrum to new market entrants, consumers will further benefit from lower prices due to greater market competition.