Invitel mulls tie-up with MPVI Mobil to offer MVNO service

24 Aug 2012

Hungarian alternative telecom services provider Invitel is considering a tie-up with mobile newcomer MPVI Mobil, with a view to becoming a mobile virtual network operator (MVNO), business daily Napi Gazdasag reports. Invitel, which is wholly owned by Mid Europa Partners (MEP) and offers fixed telephony and broadband services in Hungary, could look to establish a consortium in partnership with MPVI Mobil, the paper says without revealing its sources.

Would-be fourth mobile operator MPVI Mobil plans to use the 900MHz frequencies it was awarded in January this year. The start-up is a state-backed consortium of power utility MVM, postal services operator Magyar Posta and a unit of Hungary’s development bank MFB. On 31 January the National Media and Infocommunications Authority (NMHH) closed out the tender for 900MHz spectrum when it sold a 10.8MHz block of spectrum to MTel, Telenor and Vodafone, as well as to the newcomer. The consortium won the ‘A block’, suitable for both internet and voice services, paying HUF10 billion (USD45.4 million), while the other three firms each secured spectrum from parts of the ‘less valuable’ ‘B block’, which is better suited to provide mobile internet access in rural parts of the country. However, in February MTel (which owns mobile subsidiary T-Mobile), Telenor Hungary and Vodafone Hungary filed an appeal against the regulator’s award of mobile frequencies to the state-backed vehicle, questioning the consortium’s right to participate in the auction as well as regulations on domestic roaming services for the new operator. A month later the NMHH seemingly rejected the cellcos’ joint appeal but MTel was not satisfied with the decision, and on 12 March – citing legal errors in the auction process and the decision – it filed a petition with the Metropolitan Court, requesting that the court ‘annul the designation of the consortium as an auction winner and certain relating requirements of the final decision; and that the court suspend the enforceability of these same provisions’. Most recently, in June, an order issued by a Hungarian court put the brakes on MPVI Mobil’s launch plans – the outcome of which is still pending.

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