BUDAPEST--Hungary's state utility MVM Zrt. is the sole bidder for, and the likely winner of, the unused part of the 450 megahertz frequency concession, business daily Vilaggazdasag said Monday citing unnamed sources.

MVM winning the spectrum licence would indicate that the government hasn't given up its plan to establish a state-owned mobile provider. The government wound up a company earlier this year that it had established with the aim of providing a state-owned competitor to the existing three privately owned mobile providers. Now it seems MVM would undertake that role, the daily said.

Hungary called a tender Friday for the sale of a 10-year licence to the unused part of the 450 MHz frequency. The telecommunications authority NMHH specified that the winner will mostly need to provide digital public services such as the operation of the electronic road toll system, the linking up of public administration in the countryside, the management of public transport communication systems and providing emergency telecom services.

The government plans to receive 150 million forints ($683,000) for granting the licence, then HUF132 million a year in the first four years, and HUF265 million a year from the fifth year onward from the winner.

Hungary is also offering the unused parts of various other frequencies, which are expected to attract the existing providers: Magyar Telekom Nyrt. (MTELEKOM.BU), the country's largest telecom provider and partly owned by Deutsche Telekom AG (DTE.EXE), Norway's Telenor ASA (TEL.OS) and U.K.'s Vodafone Group PLC (VOD).

When the NMHH held a preliminary consultation with possible bidders for the 450 MHz frequency, Magyar raised the issue that the winner of the frequency will receive significant business opportunities that the winners of the other frequency licences will not have, which the hefty price tag on the other frequencies should reflect, Vilaggazdasag said.

Newspaper website: http://www.vg.hu/vallalatok/infokommunikacio/beszall-a-mobiluzletbe-az-mvm-417509

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

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