4iG sells DIGI Hungary mobile infrastructure
June 30, 2023
Antenna Hungária, owner of 4iG Group’s telecommunication portfolio, has signed an agreement with Pro-M for the sale of DIGI Hungary mobile infrastructure – which has announced to the Budapest Stock Exchange. MIS Omega Mobilhálózat carved out from DIGI Távközlési 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 (€0.18bn) includes the cost of one-year operation required by Pro-M and the costs of building the new core network for the tower infrastructure. The buyer pays the purchase price in three instalments until July 31st 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, 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 aims to improve the coverage and availability of the existing infrastructure, while making communications more secure.