Mobile phone frequency extension: "It's about better mobile phone coverage"

The auction of frequency usage rights in mobile communications, which is usually worth billions in this country, is to be discontinued for now. The hammer has fallen at the Federal Network Agency. This is clear from the draft decision of the regulatory authority's Presidential Chamber "on the renewed provision of frequencies" in the 800 MHz, 1.8 GHz and 2.6 GHz ranges from Monday, which is available to heise online.

The corresponding licenses of Deutsche Telekom, Vodafone and Telefónica (o2) expire at the end of the year. According to the letter, they are to be extended by five years until 2030. Despite much criticism, the regulator is essentially sticking to the key points it last discussed in January. In return, the three top dogs are to provide around 99.5% of the area of Germany as a whole with a download speed of at least 50 Mbit/s from 2030 onwards.

Legal and planning certainty

The 253-page document states: "After evaluating the requirements presented and assessing the various concerns, the Chamber of Presidents is convinced that there are important regulatory reasons for not carrying out a competitive frequency allocation procedure when the current rights of use expire at the end of 2025." Furthermore, other existing rights of use in the 1.8 GHz frequency range with a term until the end of 2033 are to be extended by three years upon application. This is in connection with the necessary legal and planning security for the granting of national roaming and is secured by a revocation proviso. In this way, "a larger procedural framework" could be created at a later date with an auction presumably to be carried out at that time, while aligning the terms.

"It's not about government revenue, it's about better mobile coverage and more competition," the President of the Federal Network Agency, Klaus Müller, emphasized to Handelsblatt. The agency is convinced that Germany will need better coverage in rural areas in 2025. The broadband association Breko, on the other hand, speaks of a "slap in the face for competition" with no regard for the interests of consumers and business customers. With this project, which has been controversial for months, the regulator is further protecting the top dogs from unwelcome competition. Instead of practically useless "guard rails" for the ineffective negotiation requirement, the authority should have introduced a service provider obligation. With such an obligation, the three incumbent operators would have to lease part of their capacity to competitors who do not have their infrastructure. The agency's advisory board still has to give its approval.

(nie)