By Margit Feher

BUDAPEST--Hungary's telecommunication regulator NMHH published Friday a draft tender to sell various broadband spectrum licenses in a bid to boost competition on the telecommunications market and help its development.

Hungary plans to offer the unused parts of the 800, 900, 1,000 and 2,600 Megahertz frequencies as well as the unused part of the 26 MHz frequency, the NMHH said in a statement.

The sale of the licenses may help increase competition, accelerate the development of broadband coverage, the spread of modern wireless services, and lead to competitive consumer prices, the NMHH said.

The tender format may attract bidders who otherwise couldn't apply for the licenses were they auctioned and only the price offered were taken into account when choosing the winners, the NMHH added.

The telecom authority is ready to receive positions, suggestions and other comments to the draft from potential bidders by Dec. 20.

The government expects to collect between 120 billion forints and 150 billion forints ($544.4 million and $680.4 million) from the sale in the 2014 budget.

Hungary already extended in September the mobile frequency contracts of the three telecom providers active in Hungary until April 2022. The three mobile phone companies operating in Hungary are Norway's Telenor ASA (TEL.OS), the U.K.'s Vodafone Group PLC (VOD), and Magyar Telekom Nyrt. (MTELEKOM.BU), which is majority-owned by Germany's Deutsche Telekom AG (DTE.XE).

The frequency contract extension will generate a total of about 100 billion forints ($453.6 million) in revenues for Hungary's state budget by 2022.

Write to Margit Feher at margit.feher@wsj.com

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