Following a successful migration of subscribers to Vodafone network, the transaction affects the unexploited tower and radio network assets and spectrum usage rights.
4iG Group rationalises its domestic mobile network portfolio as part of an integration strategy covering all its telecommunications companies.
The Group announced its subsidiary Antenna Hungária Plc entered into an agreement to sell MIS Omega Mobilhálózat Ltd, which owns DIGI mobile infrastructure.
The Company, which owns among other things, two thousand five hundred towers, active and passive radio network assets, as well as the rights and spectrum licences for the use of the 1800Mhz frequency band, is to be acquired by Pro-M Plc, a company owned by the Hungarian state. The transaction’s worth is 68 billion HUF.
Thanks to the acquisition, Pro-M Plc, the government telecommunication operator of the EDR network, will gain access to a modern mobile telecommunications 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 for the infrastructure and network development of the PPDR system under development by Pro-M.
Antenna Hungária Plc, owner of 4iG Group’s telecommunication portfolio, signed the agreement
with Pro-M Plc. on the sale of DIGI Hungary mobile infrastructure – announced to the Budapest Stock Exchange. MIS Omega Mobilhálózat Ltd, carved out from DIGI Távközlési Ltd in May this year,
owns the tower network, the owned and leased sites with the entire infrastructure, as well as the
active and passive radio network equipment and mobile network infrastructure consisting of
repeater stations providing 4G services, so the spectrum usage rights and radio licences for the use
of the 1800 MHz frequency band.
4iG 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. The total transaction value of 68 billion HUF includes the cost of one-year operation required by Pro-M Plc. and the costs of building the new core network for the tower infrastructure. The buyer pays the purchase price in three instalments until 31 July 2024.
One of the cornerstones of the integration strategy of 4iG’s telecom business is the rationalisation
and monetisation of the existing infrastructure in the Group’s companies. To this end, 4iG Group
currently explores 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.
Pro-M, owned by the Hungarian State and a subsidiary of NISZ National Infocommunications
Services Company Ltd., is the telecommunications service provider for the Hungarian emergency services. The acquisition of the broadband mobile data infrastructure will enable Pro-M to
implement its strategy efficiently and will shorten the development period of the PPDR system for
broadband mobile and voice data services by several years. The new standby network is suitable for the implementation of a standby radio frequency network of law enforcement agencies, the
Hungarian Defence Forces, and the Disaster Management services. The infrastructure and the
network will also enable Pro-M Zrt. to expand its closed-chain segmented communication network
services provided to gas, electricity, and water utilities. The acquisition will improve the coverage
and availability of the existing infrastructure, while making communications more secure.
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