By Veronika Gulyas and Margit Feher 
 

BUDAPEST--A unit of Hungary's state-owned utility MVM Zrt. has placed a bid under a government tender for a 450-Megahertz frequency concession, the company said Tuesday.

The license for the unused part of the frequency is for 10 years and would enable MVM NET Telecommunication Services Zrt. to set up its data connection service based on the so-called code division multiple access technology.

The telecommunications authority NMHH specified that the winner will mostly need to provide digital public services including the operation of the electronic road toll system, and the management of public transport communication systems.

If MVM clinched the license it would indicate that the government hasn't given up on its plan to establish a state-owned mobile provider.

Earlier this year, the government wound up a company it formed as a potential state-owned competitor to the existing three privately owned mobile providers, Magyar Telekom Nyrt., the country's largest telecom provider, Norway's Telenor ASA and U.K.'s Vodafone Group PLC.

Write to Veronika Gulyas at veronika.gulyas@wsj.com

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