RCS&RDS, which is expanding its mobile telephony operations in full gear in Romania, as well, has to pay a HUF10 billion (EUR32 million) licensing fee until October 9, 2014, according to an announcement of Hungary’s communications and media market watchdog NMHH.
The other companies that participated in the auction and bought licenses are Telenor, Deutsche Telekom and Vodafone, which are already providing mobile telephony services in the country. The operators will pay HUF131 billion (EUR418 million) to the government for licenses.
RCS&RDS officials confirmed for ZF the winning of the license in Hungary without providing further details.
The expansion into mobile telephony is part of RCS&RDS’ strategy to leave smaller markets to focus on the two countries generating most of its revenue: Romania and Hungary. RCS&RDS sold its operations in Croatia and Slovenia, along with 76% of its company in Serbia in 2013. The operator is also said to be in talks for an exit from the Czech Republic.
RCS&RDS is already providing TV, Internet and landline telephony services in Hungary, its second largest market after Romania.
The winning of a license by RCS&RDS, which will build its own network, will mobilize and revitalize the Hungarian mobile telephony market, NMHH says.
“In addition to the existing three mobile networks, Digi (RCS&RDS) will start to develop a new, fourth network. European instances exemplify that a new entrant mobilizes and revitalizes the market, enhances price competition and engenders new services.”
The company also provides mobile telephony services in Spain and Italy, where it operates as a mobile virtual network operator. It has about 300,000 customers in Spain, where an estimated 1,000,000 Romanians are working and its operations there generated EUR50 million revenue in 2012. In Italy, however, it has less than 60,000 customers.
(English version by Loredana Fratila-Cristescu)