5G regulation and law in Hungary

5G services are available from Magyar Telekom, Vodafone and Yettel (former Telenor) in most parts of Budapest and the surrounding areas, near Lake Balaton and in other large cities such as Győr, Debrecen, Szombathely and Kecskemét.

The companies provide continuously updated 5G coverage maps:

• Magyar Telekom 5G coverage map;
• Vodafone 5G coverage map;
• Yettel 5G coverage map.

According to the National Digitalisation Strategy 2022-2030, the peak download speed of 5G networks exceeded 652 Mbps in March 2022, ranking Hungary 14th in the world.

National 5G coverage was around 18% at the end of 2021, and the government aims to increase this to 67% by 2025. Hungary hopes to be the first EU Member State to deploy an ultra-high bandwidth - gigabit-capable - data transmission network that meets the VHCN criteria published by BEREC and supports the distribution of 5G networks.

There are no exclusive 5G tariff packages (the service is available alongside 4G), but Magyar Telekom, Vodafone and Yettel are offering 5G as part of more expensive tariff packages.

Pilot projects are running in sectors including transport, self-driving vehicles, logistics, agriculture and drone image processing.

In 2019 Magyar Telekom, T-Systems Hungary, Ericsson Hungary, the Budapest University of Technology and Economics (BME), iMar Navigation, and APZ showcased autonomous vehicles manoeuvring and communicating on the 5G network at the ZalaZone test track, which simulates real life conditions.

In October 2020 BorgWarner and T-Systems Hungary started on-site testing of three IoT solutions (automated material handling using a self-driving vehicle, barcode reading, and PLC wireless data connection) on a campus network built by Magyar Telekom.

Service provider-independent 5G test projects also launched in Kecskemét and at the Mezőhegyes stud farm in cooperation with AH NET Zrt. and CETIN Hungary Zrt. The projects investigate how to build and operate 5G networks in environments such as densely populated city centres and agricultural areas, in an economical way.

The Digital Twin project uses 5G to deploy experimental devices. Formula 1 vehicle movements can be tracked using real-time GPS positioning with an accuracy of within 10 centimetres. The information collected by the sensors is transmitted from the vehicle to the simulation environment via Magyar Telekom's 5G network. In this project Magyar Telekom first deployed the so-called 5G-Campus radio network slicing technology, which guarantees real-time communication between cars, but also allows it to simultaneously serve the public network traffic needs of users during major events.

Depending on the outcome of the project, due to the precise positioning and rapid data transmission, internet users may be able to join online and compete against Formula 1 racers in the future. The cooperation is coordinated by HUMDA Lab Nonprofit Ltd., involved Magyar Telekom and T-Systems Hungary Zrt., the Digital Development Centre of Széchenyi István University in Győr, the Governmental IT Development Agency and the Ministry of Technology and Industry.

Other planned 5G pilot projects will address:

• Road transport;
• Infrastructure development for sports facilities (enhancing spectator experience, TV broadcasting, support for competition management); 
• Industrial pilots; 
• Healthcare.

As of now, frequencies are only available to those already providing mobile communications services, but not directly to other industries. Recently, the National Media and Infocommunications Authority (NMHH) noted that it may soon be necessary to update this legal framework, which could enable companies in sectors such as transport, education/research (universities) and health to apply to establish their own private networks.

In a 5G auction held on 26 March 2020, Magyar Telekom, Vodafone and Yettel (former Telenor) won 15-year licences for spectrum in the 700 MHz, 2100 Mz and 3600 Mhz bands.

No bids were submitted for the 2600 MHz band.

The winners have acquired 15-year usage rights in three frequency bands for a total of HUF 128.49bn (EUR 361m). 

Read more at: Hungary holds 5G auction with Magyar Telekom. On 8 August 2019, Digi Communication, the Dutch parent company of Digi Hungary, also applied to take part but was not allowed to do so following a formal investigation by the NMHH. The Curia of Hungary upheld this decision on 4 February 2021 following an appeal.

NMHH believed that the real purpose of Digi Communication was not to exploit the frequency usage rights itself, but to transfer the rights it might have won to Digi Hungary, because the latter could not itself have entered the tender due to the exclusion grounds against it. The court  found that the participation conditions were lawful, objective, and non-discriminatory, ruling out companies that had infringed competition law in the 24 months prior to the auction.

The NMHH set out English-language criteria in the tender documentation on its website.

The 15-year licensing period may be extended once for an additional five years with unchanged conditions, without any additional fee. There is no limitation on the resale or lease of the licensed spectrum.

The NMHH set the starting price (unit price) of lots in the individual frequency bands as follows. The spectrum was eventually awarded to the highest bidder.

The NMHH’s current spectrum strategy covers the 2021–2025 period. The NMHH declared during an online expert advisory workshop in September 2020 that 5G must be available on railways, public roads, in settlements, at tourism sites and to sectors including healthcare, industrial parks and higher education – by 2025. The strategy is available in Hungarian only on the NMHH website:

• NMHH 2021 – 2025 spectrum strategy

On 28 January 2021, the NMHH held a tender for the licences in the 900 MHz and 1800 MHz frequency bands. Magyar Telekom, Yettel (former Telenor) and Vodafone participated in the auction, bidding a combined HUF 150.2bn (EUR 425m). The rights will be valid for fifteen years, until 9 April 2037. The 15-year licensing period may be extended once for an additional five years.

As the 2600 MHz frequency band is one of the 5G pioneer bands and is currently not yet in use for 5G. The NMHH recently stated that it aims to free it up for 5G in the future.

The spectrum usage rules are technology neutral, according to the NMHH. The same applies to electronic communications regulation.

There are no known issues in the implementation of the 5G projects, and there have not been any reported or public decisions regarding non-compliance with 5G concessions’ obligations.

At the moment, 5G projects are at the pilot stage.

The 5G rules for network or spectrum sharing are the same as the general ones outlined in the Hungarian Electronic Communications Act and in NMHH Decree No. 7/2013. (IX. 19.) regarding the secondary trading of radio frequencies.

Vodafone Hungary provided 40 MHz of its frequency in the 3500 MHz band to Budapest University of Technology and Economics. The spectrum is suitable for operating an experimental indoor 5G network across the university campus, as well as for creating an open innovation environment and a 5G Laboratory.

Yettel announced in November 2022 that it is also building a 5G network for Óbuda University (ÓE).

The licence conditions are also conducive to network sharing models, as they do not impose any resale or lease moratorium on the spectrum.

There are no special rules on access to 5G networks.

The licence conditions are conducive to network sharing models, as they do not impose any resale or lease moratorium on the spectrum.

On 5 November 2019 at an economic forum in Shanghai, Foreign Minister Péter Szijjártó shocked the industry by stating: “Huawei will cooperate with Vodafone and Deutsche Telekom [which owns Magyar Telekom]” in the domestic roll-out of 5G networks.” At the time of Szijjártó’s announcement, the 5G spectrum auction had not taken place, and Magyar Telekom and Vodafone had not decided to contract Huawei as a supplier. Magyar Telekom quickly refuted Szijjártó’s announcement in a statement.

On 26 March 2020, the National Media and Communications Authority held the long-awaited 5G spectrum auction, in which Magyar Telekom, Yettel (former Telenor) and Vodafone were the winners. Magyar Telekom announced in early April that it would continue building 5G networks with Ericsson, its technology partner of thirty years. 

After the US and UK governments plus the European Union classified Huawei as a high-risk vendor, Vodafone decided to replace the Chinese company’s equipment in the core network (including in Hungary) within five years. Yettel Hungary, which is partly owned by the Hungarian state, also conducted a tender for 5G vendors.

Despite being invited to do so by the US, the Hungarian government has declined to join the international 5G Clean Network Program. Despite the US Embassy in Budapest adding media pressure, the government is keen to stay out of the battle.

Foreign Minister Szijjártó revealed in October 2020 that Huawei would set up a research and development centre in Budapest to focus on artificial intelligence, streaming, image processing, signal transmission technologies and extremely large distribution systems. He said cooperation between Hungary and China was better than ever and noted that Huawei’s Hungarian logistics centre was its largest outside China. The minister added that despite the pandemic, Huawei has announced a significant domestic investment, and thanked the company for its donations to coronavirus efforts.

In October 2021, the government signed a long-term cooperation agreement with Huawei, which stipulates that Huawei will continue to work closely with educational institutions to support the development of digital education through innovation and knowledge transfer. The company will support domestic higher education by testing and launching smart campus solutions, continuing to develop WiFi systems and broadband networking in educational institutions. This will include 5G network solutions, smart collaboration and virtual desktop solutions to improve distance education.