Spectrum Management and Broadband Services Tender Results

National situation in field of spectrum management and broadcasting Gyula Simon Head of International Frequency Bureau National Media and Infocommunications Authority (NMHH) Regional Regional Development Development Forum Bucharest Bucharest, 20 , 20- -22 Forum , 2015 22 April 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

Tender for broadband services (1) 4 In May 2014 NMHH announced a tender for broadband services Subject of the Tender has applied the 800 MHz frequency band (790-862 MHz) part of the 900 MHz frequency band part of the 1800 MHz frequency band the whole 2600 MHz frequency band (2500-2690 MHz) and part of the 26 GHz microwave frequency band (880-885/925-930 MHz) (1725-1740/1820-1835 MHz) 23 paired basic blocks of 5 MHz 5 paired basic blocks of 1 MHz 8 unpaired basic blocks of 5 MHz 8x5 MHz 2 paired basic blocks of 28 MHz 23x2x5 MHz 5x2x1 MHz (10 MHz) (230 MHz) (800, 1800 and 2600 MHz) (900 MHz) (40 MHz) (112 MHz) (26 GHz) (2600 MHz) 2x2x28 MHz

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

Tender for broadband services (3) 6 Tender prices for individual Packages Package Tender price (in HUF) Package A 33,225,000,000 Package B 31,725,000,000 Package C 27,200,000,000 Package Tender 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)

Tender for broadband services (4) 7 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 1710-1785/1805-1880 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 24 633 GHz-26 453 GHz frequency band prior to 1 January 2014 may obtain rights of use for frequencies within the 26 GHz band.

Tender for broadband services (5) 8 Four applicants have submitted their tender applications by the deadline: Digi T vk zl si s Szolg ltat Kft., All applicants have the right to bid for the main packages Magyar Telekom Nyrt., Telenor Magyarorsz g Zrt. and Vodafone Magyarorsz g Zrt Winners of the tender procedure for broadband services : Package A Magyar Telekom Package D Magyar Telekom Package B Telenor Hungary Package E Magyar Telekom Package C Vodafone Hungary Package F DIGI Package G Vodafone Hungary 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. Winning bidders will be licensed to use the frequencies until 2034.

Tender for broadband services (6) 9 New development after the broadband tender NMHH Approves Interconnection of Magyar Telekom and Telenor Networks Published on 26. 02. 2015. The National Media and InfocommunicationsAuthority (NMHH) has approved the agreement concluded by Magyar Telekom Nyrt. and Telenor Magyarorsz gZrt. on the secondary trading (lease) of the 800 MHz band obtained at the broadband frequency tender successfully completed in 2014. 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.

3,4 3,8 GHz band (1) 10 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

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

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

3,4 3,8 GHz band (4) 13 Within this framework we have to clarify 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 For the used 3,4-3,6 GHz band licences expire in July 2016

14 Rules and procedure of digital switchover

Rules of digital switchover 15 2007 - Hungarian Parliament accepted Act 2008 - Authority tendered for accomplishment of DTV networks. Goal: 2 DVB-T, 1 DVB-H networks in 2011 - DVB-H changed to DVB-T 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

Digital switchover procedure 16 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 (83.000 households) Swith-over was realized in two steps: First step: by 31 July 2013 Second step: 31 October 2013 Migration from channels above 60 by 30 November 2013

Affected households 17 Nationwide data 11% 3% Households primarily affected (416.000) Households secondarily affected (103.000) Households not affected (3.481.000) 86%

Multiplexes and available programs 18 5 country-wide multiplexes (5 layers) + 38 local DTV stations Antenna Hung ria MindigTV (Always TV) 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, Pet fi, Bart k, Dank MindigTV Extra (Always TV Extra) with PayTV package: 34 programs

Population coverage of multiplexes 19

20 Europe regional initiatives

Europe regional initiatives 21 WTDC-14 in Dubai Regional Initiatives for Europe EUR1 Spectrum management and transition to digital broadcasting 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

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.

23 Hungarian contribution to Europe regional initiative (EUR1)

Hungarian contribution in the 2011-2014 period 24 Hungarian contribution in spectrum management and digital broadcasting program of ITU-D: May 2011 Gy r: 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 HNG can indicate its active participation in EUR1 also in the future

Hungarian contribution to Europe regional initiatives 2015-2017 25 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.

Regional Workshop 5-7 May 2015, Budapest 26 Topics (sessions): 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

Hungarian contribution to Europe regional initiatives 27 Possible seminar or workshop organisation : (exact time will be concretize later) 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)

28 Thank you for your attention simon.gyula@nmhh.hu