By Margit Feher
BUDAPEST--Magyar Telekom Nyrt. (MTELEKOM.BU) said Friday that it
received a 200 million euro ($907,931) loan from the European
Investment Bank to finance broadband investment.
Deutsche Telekom AG (DTE.XE), which holds a majority stake in
Magyar Telekom, acted as the financial intermediary for the deal,
the Hungarian company said in a release.
The five-year loan, which is denominated in forints, will
finance fixed-line and mobile broadband investment projects, said
the company, which is Hungary's largest telecommunications company
by market share.
Hungary published its draft tender for broadband spectrum
licences at the end of November 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 government expects to collect HUF120 billion
to HUF150 billion from the sale.
The price Hungary targets to receive for its telecom spectrum
licenses will pose a strain on the possible bidders, including
Magyar Telekom, analysts have said.
Magyar Telekom said last week that it won't pay a dividend this
year to keep debt within its self-imposed limit.
Write to Margit Feher at margit.feher@wsj.com
