Delay in allocating 3G licenses in Hungary pleases operators

date: July 23, 2001

The Hungarian government's decision last week to delay the sale of high speed 3G mobile licenses relieved local mobile phone operators.

Executives and analysts said delay to sell the 3G licenses this year would have been too early for the market and not the right time as foreign operators are high in debt.

Finance Minister Mihaly Varga announced last Monday that Hungary will not invite bids for the highly valued frequency, even though revenues from the sale were planned in the central budget for this year.

In May the government said it planed to offer the licenses towards the end of 2001.

Jozsef Huszlicska, strategic business development director at Pannon GSM Rt, said that it came as a relief, but hardly a surprise, that Hungary's mobile operators will not have to pay for the licenses this year.

"This is good news, though not really news, we never thought it was a serious proposition for this to go ahead as early as the fall," he said.

He added that, ideally, the licenses should be offered for free to avoid the cost being transferred onto the customers. "But I don't think the government will be prepared to do this," he said.

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