Proposed transactions could generate up to €1bn in synergies as One and Yettel move towards shared network platforms
Hungary’s telecoms infrastructure market is set for further consolidation after 4iG and e& PPF Telecom Group signed a preliminary, non-binding agreement to create a long-term strategic partnership centred on cross-ownership of fixed and mobile network assets.
The proposed transactions would see e& PPF acquire a 38% minority stake in 2Connect, 4iG’s wholesale fixed infrastructure arm, while 4iG’s telecoms holding company could take up to a 49% strategic stake in CETIN Hungary, one of the country’s largest mobile radio infrastructure providers. A sovereign wealth fund from the United Arab Emirates is also in advanced discussions to acquire a further 11% stake in 2Connect.
The deal structure leaves control unchanged at both entities but creates a cross-shareholding model designed to tighten integration between Hungary’s fixed and mobile networks. Completion remains subject to due diligence, final documentation and regulatory and shareholder approvals, with closing expected in early 2027.
For 4iG, the move addresses a structural gap in its portfolio. Its retail arm, One Magyarország, currently lacks its own passive mobile infrastructure. A stake in CETIN Hungary would give the group exposure to roughly 4,000 sites and a more balanced infrastructure base spanning fibre, data centres and radio access networks.
At the same time, e& PPF’s Hungarian operator Yettel Magyarország would deepen its alignment with 2Connect’s nationwide fibre backbone, which spans close to 42,000 km and includes data centre assets across 12 locations.
The companies say the cross-ownership model will enable a multi-tenant, converged operating structure in which infrastructure companies serve multiple retail operators at wholesale level, while competition at service level remains intact. Under related wholesale agreements announced last week, Yettel is expected to enter the fixed broadband market using 2Connect’s network from the second half of 2026, while One is anticipated to begin using CETIN’s mobile radio infrastructure from 2028.
4iG estimates that cost savings and additional revenues arising from network sharing and operational synergies could reach up to €1 billion. These are expected to stem from economies of scale, reduced duplication in network rollout and maintenance, and direct participation in infrastructure revenues by both shareholder groups.
Regional trend
The transaction also reflects a broader regional trend towards infrastructure separation and consolidation. CETIN Hungary operates as an independent integrated infrastructure provider, with shareholders including e& PPF and Singapore’s GIC. 2Connect positions itself as a neutral wholesale provider, linking major Eastern and Western European markets through its backbone.
However, deeper integration between infrastructure entities may also have competitive and vendor implications. Both One’s mobile network and CETIN’s active and passive infrastructure are currently supplied primarily by Chinese vendors – Huawei in the case of One and ZTE at CETIN. A more coordinated infrastructure strategy could influence future procurement decisions, particularly as European policy debates around supplier diversity and network security continue.
Hungary already has active network-sharing arrangements in place. Magyar Telekom cooperates with Yettel on certain LTE spectrum and 2G network operations. The proposed 4iG–e& PPF partnership would add a further layer of structural integration to a market that is increasingly organised around shared infrastructure platforms.
