National situation in field of spectrum management and broadcasting Gyula Simon Head of International Frequency Bureau National Media and Infocommunications Authority (NMHH) Regional Development Forum Bucharest, April, 2015

2 Content Spectrum management: - multiband tender for broadband services - 3,4- 3,8 GHz band Rules and procedure of digital switchover Europe regional initiatives Hungarian contribution to Europe regional initiatives

3 Spectrum management: - multiband tender for broadband services - 3,4- 3,8 GHz band

4 Tender for broadband services (1) In May 2014 NMHH announced a tender for broadband services Subject of the Tender has applied  the 800 MHz frequency band ( MHz)  part of the 900 MHz frequency band ( / MHz)  part of the 1800 MHz frequency band ( / MHz)  the whole 2600 MHz frequency band ( MHz)  and part of the 26 GHz microwave frequency band Subject of the Tender has applied  the 800 MHz frequency band ( MHz)  part of the 900 MHz frequency band ( / MHz)  part of the 1800 MHz frequency band ( / MHz)  the whole 2600 MHz frequency band ( MHz)  and part of the 26 GHz microwave frequency band 23 paired basic blocks of 5 MHz 23x2x5 MHz (230 MHz) (800, 1800 and 2600 MHz) 5 paired basic blocks of 1 MHz 5x2x1 MHz (10 MHz) (900 MHz) 8 unpaired basic blocks of 5 MHz 8x5 MHz (40 MHz) (2600 MHz) 2 paired basic blocks of 28 MHz 2x2x28 MHz (112 MHz) (26 GHz) 23 paired basic blocks of 5 MHz 23x2x5 MHz (230 MHz) (800, 1800 and 2600 MHz) 5 paired basic blocks of 1 MHz 5x2x1 MHz (10 MHz) (900 MHz) 8 unpaired basic blocks of 5 MHz 8x5 MHz (40 MHz) (2600 MHz) 2 paired basic blocks of 28 MHz 2x2x28 MHz (112 MHz) (26 GHz)

5 Tender for broadband services (2) The following spectrum licences were attainable for the Packages Band Quantity pending allocation (MHz) Package „A” Package „B” Package „C” 800 MHz6x2x5 (60)2x2x5* (20*) 900 MHz5x2x1 (10)2x2x1* (4*) 1x2x1* (2*) 2600 MHz10x2x5 5x5 (125) 6x2x5* (60*)4x2x5* (40*)5x5* (25*) Band Quantity pending allocation (MHz) Package „D” Package „E” Package „F” Package „G” Package „H” Package „I” 1800 MHz 3x2x5 (30) 1x2x5 (10) 2600 MHz 4x2x5 3x5 (55) 4x2x5 (40) 3x5 (15) 26 GHz 2x2x28 (112) 2x2x28 (112)

6 Tender for broadband services (3) Tender prices for individual Packages PackageTender price (in HUF) Package „A”33,225,000,000 Package „B”31,725,000,000 Package „C”27,200,000,000 PackageTender price (in HUF) Package „D”2,650,000,000 Package „E”2,650,000,000 Package „F”2,650,000,000 Package „G”3,000,000,000 Package „H”850,000,000 Package „I”200,000,000 (prices do not include VAT)

7 Tender for broadband services (4) Restrictions on obtaining the rights of use for frequencies  an applicant can only obtain rights of use for frequencies included within one of Packages “A”, “B” or “C” ;  for a single licensee, the total of the frequency range affected by the spectrum licences obtained prior to 1 January 2014 within the / MHz frequency band and during the tender procedure in the 1800 MHz frequency band may not exceed 60 MHz (spectrum cap);  only participants who have not obtained any rights of use for frequencies within the GHz GHz frequency band prior to 1 January 2014 may obtain rights of use for frequencies within the 26 GHz band.  an applicant can only obtain rights of use for frequencies included within one of Packages “A”, “B” or “C” ;  for a single licensee, the total of the frequency range affected by the spectrum licences obtained prior to 1 January 2014 within the / MHz frequency band and during the tender procedure in the 1800 MHz frequency band may not exceed 60 MHz (spectrum cap);  only participants who have not obtained any rights of use for frequencies within the GHz GHz frequency band prior to 1 January 2014 may obtain rights of use for frequencies within the 26 GHz band.

8 Four applicants have submitted their tender applications by the deadline:  Digi Távközlési és Szolgáltató Kft.,  Magyar Telekom Nyrt.,  Telenor Magyarország Zrt. and  Vodafone Magyarország Zrt Four applicants have submitted their tender applications by the deadline:  Digi Távközlési és Szolgáltató Kft.,  Magyar Telekom Nyrt.,  Telenor Magyarország Zrt. and  Vodafone Magyarország Zrt Tender for broadband services (5) Winners of the tender procedure for broadband services : Winning bidders will be licensed to use the frequencies until Packages “I” and “H” - neither Bids nor Supplementary Bids have been received for packages “I” and “H”, so the NMHH could not determine a winner for these Packages. All applicants have the right to bid for the main packages

9 New development after the broadband tender NMHH Approves Interconnection of Magyar Telekom and Telenor Networks Published on The National Media and Infocommunications Authority (NMHH) has approved the agreement concluded by Magyar Telekom Nyrt. and Telenor Magyarország Zrt. on the secondary trading (lease) of the 800 MHz band obtained at the broadband frequency tender successfully completed in Last year Magyar Telekom and Telenor obtained spectrum licenses for the 790–862 MHz band at the NMHH tender on spectrum licenses for broadband services. On 18 December 2014, the two operators concluded a lease agreement to ensure efficient frequency use, and applied for the permission of NMHH. Within its competence granted by the laws on electronic communications, the Authority has verified compliance with the technical requirements and the regulatory environment, and as of 24 February, approved the execution of the contract on the above secondary trading. The lease agreement on the frequency band signed by the mobile operators expires in 2029 and until such time the parties mutually and partially share spectrum rights with each other. NMHH Approves Interconnection of Magyar Telekom and Telenor Networks Published on The National Media and Infocommunications Authority (NMHH) has approved the agreement concluded by Magyar Telekom Nyrt. and Telenor Magyarország Zrt. on the secondary trading (lease) of the 800 MHz band obtained at the broadband frequency tender successfully completed in Last year Magyar Telekom and Telenor obtained spectrum licenses for the 790–862 MHz band at the NMHH tender on spectrum licenses for broadband services. On 18 December 2014, the two operators concluded a lease agreement to ensure efficient frequency use, and applied for the permission of NMHH. Within its competence granted by the laws on electronic communications, the Authority has verified compliance with the technical requirements and the regulatory environment, and as of 24 February, approved the execution of the contract on the above secondary trading. The lease agreement on the frequency band signed by the mobile operators expires in 2029 and until such time the parties mutually and partially share spectrum rights with each other. Tender for broadband services (6)

10 3,4 – 3,8 GHz band (1) Next spectrum utilisation challenge - 3,4 – 3,8 GHz band Present situation of the usage : 3,4 – 3,6 GHz band 3,6 – 3,8 GHz band The band is not used

11 Future use of the band: 3,4 – 3,6 GHz band 3,6 – 3,8 GHz band by the Commission Implementing Decision 2014/276/EU 3600 MHz 3700 MHz 3800 MHz 3400 MHz 3500 MHz 3600 MHz 3490 MHz 3410 MHz 3510 MHz 3590 MHz FDD TDD 3,4 – 3,8 GHz band (2) Implementation deadline : 30 June 2015

12  the Authority provided information about - future planned utilisation of the frequency band; - regulatory enviroment; - process of intended course  the Authority provided information about - future planned utilisation of the frequency band; - regulatory enviroment; - process of intended course In December 2014 NMHH held a public hearing on 3,4-3,8 GHz band in the course of which In December 2014 NMHH held a public hearing on 3,4-3,8 GHz band in the course of which  and potential stakeholders provided prior information on their conception about future use of the band  and potential stakeholders provided prior information on their conception about future use of the band 3,4 – 3,8 GHz band (3) Now we have a project about the preparation a tender for this-year-offer of the 3,4 -3,8 GHz frequency band

13  compatibility with primary radiolocation and radionavigation services below 3400 MHz  question of technology neutrality (coexistence of FDD and TDD)  operating systems of the neighbouring countries  survival / continuation of own national systems into new technology  compatibility with primary radiolocation and radionavigation services below 3400 MHz  question of technology neutrality (coexistence of FDD and TDD)  operating systems of the neighbouring countries  survival / continuation of own national systems into new technology 3,4 – 3,8 GHz band (4) Within this framework we have to clarify For the used 3,4-3,6 GHz band licences expire in July 2016

14 Rules and procedure of digital switchover

15 Rules of digital switchover The license provides the right to operate digital broadcasting multiplexes for a 12- year-period ( 5 DDT, 1 audio) until 05 September 2020 Digital switchover shall be implemented by 31 December 2011 (modified to 31 December 2014) At least 94% of population shall be reached by public service programs The license provides the right to operate digital broadcasting multiplexes for a 12- year-period ( 5 DDT, 1 audio) until 05 September 2020 Digital switchover shall be implemented by 31 December 2011 (modified to 31 December 2014) At least 94% of population shall be reached by public service programs Hungarian Parliament accepted Act Authority tendered for accomplishment of DTV networks. Goal: 2 DVB-T, 1 DVB-H networks in DVB-H changed to DVB-T Goal: 2 DVB-T, 1 DVB-H networks in DVB-H changed to DVB-T

16 Swith-over was realized in two steps: First step: by 31 July 2013 Second step: 31 October 2013 Swith-over was realized in two steps: First step: by 31 July 2013 Second step: 31 October 2013 Digital switchover procedure General principals Assist every household in need of financial aid and technical assistant Nobody remained left behind or left out of the process involuntarily. Trial step - pilot project in 2 region in 2012 ( households) Migration from channels above 60 by 30 November 2013

17 Affected households

18 Multiplexes and available programs with PayTV package: 34 programs 5 country-wide multiplexes (5 layers) + 38 local DTV stations Free of charge (subscription-free digital commercial service) : 8 TV programs and 4 radio programs Free of charge (subscription-free digital commercial service) : 8 TV programs and 4 radio programs M1HD, M2HD, DunaHD, Duna World, TV2, RTL Klub, C8, Euronews Kossuth, Petőfi, Bartók, Dankó Antenna Hungária ”MindigTV” (Always TV) MindigTV Extra (Always TV Extra)

19 Population coverage of multiplexes

20 Europe regional initiatives

21 Europe regional initiatives EUR2 Development of broadband access and adoption of broadband EUR3 Ensuring access to telecommunications/ICTs, in particular for persons with disabilities EUR4 Building confidence and security in the use of telecommunications / ICTs EUR5 Entrepreneurship, innovation and youth EUR2 Development of broadband access and adoption of broadband EUR3 Ensuring access to telecommunications/ICTs, in particular for persons with disabilities EUR4 Building confidence and security in the use of telecommunications / ICTs EUR5 Entrepreneurship, innovation and youth WTDC-14 in Dubai – Regional Initiatives for Europe EUR1 Spectrum management and transition to digital broadcasting

22 Objective: To foster regional cooperation, mainly supplemented by direct assistance to the administrations in the process of analogue TV switch-off, and management of the frequencies in the digital dividend bands, which are to be utilized bearing in mind the most effective use of radio spectrum. Assistance to the countries in need in the following: 1) Transition from analogue to digital terrestrial broadcasting and switch-off process 2) Capacity building in spectrum management, including in the digital dividend band 3) Elaboration of studies, benchmarks and guidelines on the economic and policy aspects of the assignment and use of the radio-frequency spectrum. Assistance to the countries in need in the following: 1) Transition from analogue to digital terrestrial broadcasting and switch-off process 2) Capacity building in spectrum management, including in the digital dividend band 3) Elaboration of studies, benchmarks and guidelines on the economic and policy aspects of the assignment and use of the radio-frequency spectrum. EUR1 Spectrum management and transition to digital broadcasting EUR1 Spectrum management and transition to digital broadcasting

23 Hungarian contribution to Europe regional initiative (EUR1)

24 Hungarian contribution in the period  May 2011 Győr: ITU subregional seminar and round table on DTV and DD  November 2012 Budapest : Transition to DTV and DD seminar  January 2014 Budapest : Transition to DTV and DD seminar  May 2011 Győr: ITU subregional seminar and round table on DTV and DD  November 2012 Budapest : Transition to DTV and DD seminar  January 2014 Budapest : Transition to DTV and DD seminar Hungarian contribution in spectrum management and digital broadcasting program of ITU-D: HNG can indicate its active participation in EUR1 also in the future

25 Hungarian contribution to Europe regional initiatives May 2015, Budapest: Regional Workshop for Europe and CIS on „Spectrum Management and Transition to Digital Terrestrial Television Broadcasting” 5-7 May 2015, Budapest: Regional Workshop for Europe and CIS on „Spectrum Management and Transition to Digital Terrestrial Television Broadcasting” Workshop is organized in the context of the European Regional Initiative approved by WTDC-14 on Spectrum Management and Transition to Digital Broadcasting -to provide a basis for the exchange of best practices encountered on the path of digital terrestrial television broadcasting transition, and - works towards the way to maximize the economic and social benefits of the digital dividend. -to provide a basis for the exchange of best practices encountered on the path of digital terrestrial television broadcasting transition, and - works towards the way to maximize the economic and social benefits of the digital dividend.

26 Regional Workshop 5-7 May 2015, Budapest  European Regional Initiative (approved at WTDC-14)  Digital terrestrial television transition (on the basis of GE’06 Plan)  Post analog switch-off (Frequency planning, licencing, new services)  Utilization of the Digital Dividend (planned services)  Spectrum management experiences in the region  Spectrum management tools  European Regional Initiative (approved at WTDC-14)  Digital terrestrial television transition (on the basis of GE’06 Plan)  Post analog switch-off (Frequency planning, licencing, new services)  Utilization of the Digital Dividend (planned services)  Spectrum management experiences in the region  Spectrum management tools Topics (sessions):

27  2017: workshop on Development of broadband access and adoption of broadband (by the ITU-D decision)  Cross-regional consultation and training course in Budapest (3-5 days) (for 1 country, on the basis of ITU-D proposal)  2017: workshop on Development of broadband access and adoption of broadband (by the ITU-D decision)  Cross-regional consultation and training course in Budapest (3-5 days) (for 1 country, on the basis of ITU-D proposal) Hungarian contribution to Europe regional initiatives Possible seminar or workshop organisation : (exact time will be concretize later) Possible seminar or workshop organisation : (exact time will be concretize later)

28 Thank you for your attention