Government snaps up tower and radio network assets, plus spectrum usage rights
As part of a wider mobile network portfolio rejig, 4iG Group subsidiary Antenna Hungária entered into an agreement to sell MIS Omega Mobilhálózat, which owns DIGI mobile infrastructure.
The new owner, state-owned Pro-M, gains 2,500 towers, active and passive radio network assets, as well as the rights and 1800MHz spectrum licences. The deal is worth HUF68bn and includes the cost of one-year operation, required by Pro-M, and the costs of building the new core network for the tower infrastructure.
Pro-M, a subsidiary of NISZ National Infocommunications Services Company, operates the government’s emergency services radio network and plans to use the infrastructure to provide broadband data transmission services to law enforcement agencies, the Hungarian Defence Forces, and the disaster management services.
The acquisition will significantly shorten the timeframe to complete the nation’s public protection & disaster relief network. The infrastructure will also enable Pro-M to expand its closed-chain segmented communication network services provided to gas, electricity, and water utilities.
4iG said it had been negotiating with several potential buyers on the trade of DIGI’s mobile network assets, of which Pro-M Pls’s offer was accepted. Since completing the acquisition of Vodafone Hungary with state-owned Corvinus in February, 4iG has said it is continuing to explore “merger and outsourcing opportunities for its fixed infrastructure in Hungary and passive mobile infrastructure in the Western Balkans with a view to transform its telecoms business processes, improving profitability, and raising capital.”
Government wants more
The deal continues the trend of the government of Hungary growing its control of the national telecom sector. In March, Corvinus acquired a minority stake in PPF Telecom Group’s operator Yettel Hungary through a share-swap deal.
According to Reuters, The Economic Development Ministry said the share swap deal was concluded between Corvinus Nemzetkozi Befektetesi and 4iG’s Antenna Hungaria unit, providing an indirect minority stake for Corvinus in Yettel Magyarorszag.
At the time the ministry wasn’t hiding its intentions. “Apart from diversifying its investment portfolio further in the telecoms sector, the deal will also enable the state to more forcefully and efficiently contribute to the development of the industry,” it said.
Bigging up Albania
4iG underwent a significant transformation in the first quarter of 2023, following the Vodafone acquisition. It is now the second largest in the Hungarian telecoms market in mobile voice and internet services, and claims it is the market leader in fixed internet services and television broadcasting.
Following the merger of ALBtelecom and One Telecommunications on 1 January 2023, ONE Albania, one of the largest telecommunications companies in the Western Balkans, emerged. This 4iG affiliate has become the leading fixed voice, internet, and television operator as well as the second largest mobile operator in the Albanian telecommunications market.
As a result of the merger, 4iG claims ONE Albania has the largest fixed network in the country, the fastest growing base of mobile subscribers, and a 5G-ready mobile infrastructure. After being launched in Montenegro, 4iG Group launched its rebranding in Albania on 14 March, making ONE the unified brand name.