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Antenna Hungária Lures Investors

The Hungarian terrestrial transmission company has launched an upgrade of its services for radio broadcasters, including DAB and DRM. Go To Follow Up & Comments

Antenna Hungária provides transmission facilities and systems for radio and television broadcasters throughout Hungary. It also provides networks and transmitters for public service communications as well as mobile telephony.

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The company began its long road to privatization in 1992 when it separated from Hungarian Post. It began offering mobile and satellite services in 1998.

Pilot project

In 2003, Antenna Hungária spun off mobile services into a separate company and sold off a 20-percent stake in mobile phone company Vodaphone Hungary to Vodaphone in 2004.

In 1998, 75 percent of company revenues came from radio and television transmission services. This fell to 55 percent by 2003 as telecom and multimedia services became a bigger factor.

The major radio upgrade project for Antenna Hungária replaces the remaining 70 MHz (OIRT) frequencies for the national Kossuth channel and the regional stations of pubcaster Magyar Rádió. Other public radio channels have migrated to the 100-MHz (CCIR) FM band.

Privately-owned radio channels, first licensed in 1994, have always occupied the 100-MHz FM band. An agreement among regulators in south-eastern Europe mandates giving up the OIRT frequencies by February 2006.

A DAB multiplex used by Magyar Rádió was launched at the end of 1995 as a pilot project. It originally offered three program channels, with a fourth — a DAB-only classical music channel — added in 2004.

Antenna Hungária added a second experimental DAB multiplex to serve the Budapest area in 1998.

Current rules

Antenna Hungária operates three medium-wave transmitters for the national Kossuth channel and the Catholic station, Magyar Katolikus, as well as regional transmitters.

As these are replaced, said spokesperson András Tóth, “we buy and use DRM compatible transmitters.” There are plans for an experimental DRM transmission though there is no target date as yet.

“I believe today the major obstacles [to digital broadcasting] are the regulatory framework,” said Antenna Hungária chief executive Géza László.

Current Hungarian media law covers only analog broadcasting. It is not possible to officially license any digital channels, radio or television, until the Országos Rádióés Televízió Testület (ORTT) regulatory commission revises current rules.

Thus, all DAB and DRM transmissions in Hungary are considered ‘experimental’ or ‘pilot’ projects until the law changes.

“The problem,” said László, “is that Hungarian media law needs to gain a two-thirds majority in parliament — right now, there are two big political parties in Hungary and they do not agree on anything.”

Significant stir

  A booming broadcast and telecom market, Antenna Hungária profitability plus a government mandate to fully privatize the company has caused a significant stir among potential strategic and financial investors.

The Budapest Business Journal (BBJ) reported in March that Ceské Radiokomunikace (CRa), Télédiffusion de France (TDF) and the Spanish operation Retevisión are interested bidders. Financial investors Warburg Pinkus LLC, Advent International and AIG Global Investment are also interested, according to local press reports.

Italian firm Telespazio has expressed interest in a minority share. Bivideon, a subsidiary of Deutsche Bank, purchased Ceské Radiokomunikace, a transmission services provider like Antenna Hungária, in 2004.

Advent International, the largest private equity house in central Europe, purchased Hungarian national commercial channel Danubius Radio and control of the Bulgarian national telecom company last year.

By the middle of this year, Állami Privatizációs és Vagyonkezelö (ÁPV), the Hungarian state privatization and asset management company, is expected to announce the sale of 75 percent of Antenna Hungária shares. The tender for bid was announced April 11th.

When the privatization was announced, ÁPV said it was necessary “in order for Hungarian broadcasting to be able to keep abreast of the technical revolution.” An earlier attempt at privatizing Antenna Hungária dissolved in 2000 as capital markets reeled under the dot-com crash


Previously published in Radio World International, June 2005


ftm Follow Up & Comments

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Six Remain in Antenna Hungaria Bidding - July 2, 2005
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