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Telecom
April 2020 www.intellinews.com I Page 16
operator in regard to a past deal. This continues the policy of Hungarian authorities of obstructing the entry of players in the telecom market, with the result of the internet fees paid by local customers being among the highest in Europe, Digi argued.
Digi is controlled by Romanian businessman Zoltan Teszari and already operates on the Hungarian market, as well as in Spain and Italy.
Hungarian telecom providers paid a combined HUF126bn (€354mn) for 15-year concessions of 5G frequency bands, the state media authority NMHH announced on March 26, adding that “the competition between three incumbents was fierce.”
Digi was the fourth applicant but its bid was rejected by the market regulator as the tender document included a section that excludes candidates over violations of previous antitrust rules in the last 24 months. Digi was fined HUF90mn for allegedly providing misleading information to the authorities when it acquired Invitel's retail business in 2018. The court case between Digi and the Hungarian Competition Authority (GVH) was not finally settled yet (as claimed by NMHH), Digi explained in a press release on March 19.
"We are deeply disappointed by the decision
of the National Communications and Media Authority (NMHH) which decided to conclude this controversial tender procedure. We note that the DIGI Group has taken court proceedings to request the suspension of the procedure and has not received, so far, the final verdict. We consider that the way the authority handled this tender, ignoring our legitimate actions in court, contradicts first and foremost the mission of this institution, that of ensuring effective competition conditions for the welfare of consumers
and users,” said Serghei Bulgac, CEO Digi Communications NV, in a statement.
Digi Group said it considers that, by discouraging competition and blocking access to a fourth mobile operator on the spectrum, the Hungarian authority drastically reduces the chances
of consumers to purchase basic services at competitive prices.
According to European Commission’s studies on mobile internet tariffs in EU countries, in 2019, Hungary was among the most expensive countries in Europe with access to mobile data, Digi argued. Hungarian consumers pay much higher prices than the fees in more developed markets such
as Austria, France, Germany or the UK.
At present, the Digi Group is committed to continuing its legal steps to challenge its exclusion from the auction, “in the interests
of consumers and the market, which, in
2020, deserves services accessible by mobile communications”, the document states. The Digi group called on the authority to cancel the decision announced on March 26, to resume the procedure and to play the role of an equitable arbitrator in the communications market, Digi Communications said in the press release.