New cellco MPVI raises USD62.6m new capital, as court decision looms

30 Aug 2012

The consortium owners of start-up mobile operator MPVI Mobil – state interests Magyar Posta, Hungarian Electricity Works (MVM) and Hungarian Development Bank (MFB) – have raised the company’s capital by HUF14.1 billion (USD62.6 million) through non-cash contributions, Econews reports. The majority state-owned company was established with registered capital of HUF500 million in April, which has now been raised to more than HUF14.6 billion via the capital increase which took place last month.

MPVI Mobil won the premium ‘A block’ of frequencies in an auction at the end of January, suitable for both internet and voice services, paying HUF10 billion, while Hungary’s three incumbent cellcos each secured spectrum from parts of the ‘B block’, which is better suited to provide mobile internet access in rural parts of the country. Vodafone reportedly bid HUF15.7 billion, T-Mobile offered HUF10.9 billion and Telenor bid HUF7.3 billion. However, as reported by CommsUpdate, since the award the existing mobile network operators have launched a legal challenge to MPVI’s spectrum allocation through the courts. The start-up is nonetheless focusing its efforts to start offering services in the centre of the capital, Budapest, by the end of 2012 – as per the terms of its licence award. A court decision is expected to be taken on 3 September in respect of the new cellco’s rights to the awarded frequencies.

Magyar Posta (holding 10%), MVM (45%) and MFB Invest (45%) reportedly made non-cash contributions in July in the form of rights representing assets in proportion to their holdings to MPVI. Regarding Magyar Posta, MPVI will be able to use the postal firm’s logistic fleet for advertising for 15 years and market its services at post offices. The other two companies also transferred frequency usage rights to MPVI.

Hungary, MPVI Mobil,

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