The inclusion of DIGI in the new frequency auction is unsound

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Practically, even before the application phase of the official frequency sales procedure, it may be decided that DIGI Távközlési Kft., The fourth Hungarian mobile service provider with its own infrastructure, cannot once again get a chance to substantially expand the capacity and coverage of its mobile service. According to the draft tender documentation posted on the website of the National Media and Communications Authority (NMHH), the service provider was condemned by two authorities for various reasons in the 24 months preceding the application, one of which may provide sufficient grounds for exclusion from the proceedings.

According to the Authority's draft dossier, the auction application for a total of 60 and 120 MHz free blocks in the 900 and 1800 MHz bands, respectively, did not meet the other conditions. the deadline is 10 November 2020, after which the registration procedure will take place, followed by the bidding itself. DIGI Távközlési Kft. Did not finally start the auction for the free blocks of the 700 MHz, 2100 MHz, 2600 MHz and 3600 MHz bands of the authority last year, as the company would presumably have been excluded on the basis of the conflicting conditions of the tender documentation. applicants. Instead, the parent company, DIGI Communications NV.

As we wrote earlier, it is contained in Chapter 2.7 (61) (n) of last year's Procedural Documentation. a clause restricting proceedings to legal or natural persons

against whom an official or final court decision which has become final in the 24 months preceding the opening of the auction procedure has not established a prohibition of an agreement restricting economic competition, an economic

This passport was also included in the draft dossier for this year's proceedings without change, but as the proceedings start on 10 November and the decision of the competition authority condemning DIGI is due in 2018. dated 14 November, so its legal effect applies equally to

If this were not enough, a new conflict of interest rule was added to the dossier, according to which only participants

against whom 24 (prior to the opening of the auction procedure) could be registered were registered. an official or final court decision which has become final in twenty-four months has not established the protection of natural persons with regard to the processing of personal data and the free movement of such data by ordering the publication of the controller's identity, subject to disclosure of the final decision, and Directive 95/46 / EC.

In May of this year, DIGI was fined the largest amount ever for the existence of the National Data Protection and Freedom of Information Authority for failing to comply with inadequate data protection background measures.

In addition, an additional regulation makes the start-up of DIGI Távközlési Kft. impossible, as the tender documentation also stipulates that only companies that

can accept applications. have special experience in operating a public MFCN network, have been providing mobile radiotelephone service on their own network for at least 3 (three) years and the number of MFCN users (active SIM cards) exceeded 200,000 (two hundred thousand) on 31 December 2019;

In fact, the customer base of DIGI Távközlési Kft.'s test service still does not reach 200,000 people (SIM) today.

If a service provider with Romanian ownership cannot start the auction due to ominous conflict of interest rules, it could easily result in the fourth in the long run, the mobile operator will not be able to become a significant market factor in the domestic market. However, it is questionable whether in this case the possible start-up of the parent company would again be rejected by the authority on the basis of the same principles.

The authority will hold a public consultation with stakeholders on the tender dossier on 29 September. The consultation is not in the press.


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