1. Hungarian frequency tender Tender of spectrum licences for broadband services Emília Ulelay Deputy Head of Department Frequency- and Identifier Management Department 11. November 2014.

2. 2 Main parameters of the concept Independent but closely interconnected parameters of the concept of the award: 0. Object (technical parameters) 1.Timing …………..2013...2014 (election) …2015........... 2. One-off fee0………..104,15…120…..130…..140………Mrd HUF 3. Period of the validity 9....10….11…12…13…14…15…..20…………….year 4. Legal Risk 0………………………………anybody can bring a lawsuit 5. Obligations

3. 3 Object 3

4. 4 Objectives 4 to utilise spectrum assets in an efficient manner generating social welfare, considering social aspects to the greatest possible extent enhance competitionfoster, encourage and support the extension of broadband wireless coverage in Hungary; foster, encourage and support to enhance broadband penetration in order to allow Hungary to meet the European Digital Agenda targets (100% minimum-speed broadband coverage, the entire European Union to be covered by broadband above 30 Mbps by 2020, 50 percent of European households to subscribe to broadband above100 Mbps by 2020). support and foster the deployment of broadband internet coverage in rural areas currently lacking broadband and to ensure the access to it to the greatest extent possible correlate to RSPP full utilisation of the 800 MHz, 900 MHz, 1800 MHz and 2600 MHz bands to achieve sufficient state revenues from the sale of spectrum licences within the context of responsible management of national assets

5. 5 Mobile bands 5 900MHz 1800 MHz 2100 MHz 15MHz FDD 2600 MHz 30.06.2014 07.10. 2014 04.05. 2016 30.06.2014

6. 6 Mobile bands and technologies 470 MHz790 - 900 MHz Mobile frequency bands TV broadcasting band (analogue and digital) 2100 MHz 1800 MHz 862 MHz 2600 MHz 800 MHz (band available for electronic communications objectives in harmonised way following the switch-off of analogue TV broadcasting / the retuning of digital stations) - already in use - up for sale Technology in specific bands Duplex bandwidth necessary for service provision (min. / opt.) 5 / 10 MHz 10 MHz 15 MHz 10 / 20 MHz 15 MHz - in bands below 1 GHz: - in bands above 1 GHz: Total bandwidth proposed, optimally available for service provision 15 / 20 MHz 40 / 50 MHz GSM, UMTS (LTE) GSM, UMTS, LTE BEM LTE BEM UMTS (LTE) BEM LTE For geographic coverage (national) For increasing capacity (towns) GSM: Voice UMTS: Voice, data LTE: Data 6

7. 7 900 MHz 7 880-880.1 925-925.1 914.9-915 959.9-960 880.1 925.1 885.1 930.1 886.9 931.9 887.9 932.9 897.9 942.9 905.9 950.9 914.9 959.9 T*M**VodafoneTelenor (T)Magyar Telekom (M)*  880.1 925.1 885.1 930.1 889.9 934.9 894.9 939.9 899.9 944.9 904.9 949.9 909.9 954.9 914.9 959.9 880-880.1 925-925.1 914.9-915 959.9-960 *EGSM  basic blocks of 1 MHz Licence not issuedAssignment not restricted by any current licences Guard bandUsed by previously issued licences

8. 8 1800 MHz 8

9. 9 Border area usage 9 Impact of analogue Serbian TV stations (Chanel 61, 66)

10. 10 Band Spectrum pending allocation (MHz) ABCDEFGHI 800 MHz6x2x5(60)2x2x5(20) 2x2x5 (20) * 900 MHz5x2x1(10)2x2x1(4) 1x2x1 (2) 1800 MHz3x2x5(30)1x2x5 (10) 2600 MHz 14x2x5 8x5 (180) 6x2x5(60)4x2x5(40) 4x5 (20) + 5 (separation channel) 4x2x5 (40) 3x5 (15) 26 GHz 2x2x28 (112) 2x2x28 (112) Total 23x2x5(230) 5x2x1 (10) 8x5 (40) 2x2x28 (112) 8x2x5(80) 2x2x1(4) (94) 6x2x5(60) 2x2x1(4) (64) 2x2x5(20) 4x5(20) + 5 (5) 1x2x1 (2) (20+22+5) 1x2x5(10) 4x2x5(40)3x5(15) 2x2x28 (112) Spectrum packages 10

11. 11 Licence acquisition rules 11 Spectrum cap One applicant may only obtain a spectrum licence for frequencies included within one of Packages “A”, “B” or “C”. In the 1710-1785/1805-1880 MHz frequency band, the total of the frequency range affected by the spectrum licences acquired prior to 1 January 2014 and during this procedure in the 1800 MHz frequency band may not exceed 60 MHz. In the 1710-1785/1805-1880 MHz frequency band, spectrum licences for the basic blocks forming part of packages “D”, “E” and “F” must be obtained following the rules below: the continuity of user blocks is ensured, and the spectrum licence for the basic blocks acquired by the incumbent mobile operator is adjacent to the spectrum licence already held. Applicants already holding a spectrum licence in the 26 GHz band cannot acquire another licence within the band.

12. 12 Roll-out obligation 1. Coverage requirements Geographic Population Objective: Providing coverage in areas with no broadband coverage Reaching the percentages close to the ones defined in the Digital Agenda 2. Deployment requirements Power limits Specific enforcement methodology Objective: defining minimum parameters 3. Obligations are adapted to bands, packages. The national coverage requirement can be met using any of the frequency bands obtained. coverage of at least 96% of the population and at least 90% of national geographic coverage within 60 months. The winning applicant can achieve coverage of at least 15% of population the using any of the existing frequencies. Ensuring coverage within municipal boundaries. For example: If a participant also acquires a licence for either of Packages “G” and/or “H” alongside packages “A”, “B” or “C”, the roll-out obligation shall be fulfilled in the 2600 MHz band.

13. 13 Thank you for your attention. 13