Service provider obligation: Telekom & Co. to share their mobile networks

The Federal Network Agency wants to extend the frequency usage rights of the three established mobile network operators Deutsche Telekom, Vodafone and Telefónica (O2) in the 800 MHz, 1.8 GHz and 2.6 GHz ranges, which expire in 2025, by five years. The broadband association Breko considers this to be feasible at best if the regulatory authority imposes an effective service provider obligation on the top dogs in return for the benefit of "all suitable users". This would mean that Telekom & Co. would have to lease part of their capacity to competitors who do not have their own infrastructure.

Such an obligation is "the mildest effective regulatory instrument" in terms of "effective competition", writes the Breko in a statement available to heise online on the relevant consultation paper from the Network Agency in May. Only in this way could "the existing imbalances" between the two sides be eliminated, "so that both fixed network operators can become active in the market with attractive bundled offers and the threat of market exits by currently active network-independent mobile providers can be prevented". At the same time, this would promote the interests of consumers "and not least business customers in the best possible way".

The draft of the regulatory authority's presidential chamber has so far only adhered to the negotiation requirement in favor of service providers and mobile discounters that has been in place since 2018. However, this has "proven to be ineffective in practice", Breko emphasizes. The corresponding proposal ignores "the current market situation at both wholesale and retail level" and is based on a controversial expert opinion that does not allow any valid statements to be made about competition in mobile telephony. If the Chamber were to stick to its approach, the frequency extension would be unlawful in the opinion of the association.

Bundles with fiber optics and 5G at a bargain price?

If the Network Agency does not impose such an obligation, Breko will at least push for a ban on so-called resale bans: These artificially restricted competition in favor of the incumbent operators and prevented network-independent providers from selling pre-service contingents to third parties. Such a step would also enable fiber-optic providers without their own mobile network to market bundled products such as superfast internet in addition to 5G mobile communications.

In order to increase the effectiveness of the outlined negotiation requirement and to reach contractual agreements as quickly as possible, Breko believes that the major network operators should be obliged to submit a binding contract offer to service providers within four weeks and to discounters within three months. For consumers, the association believes it would be sensible to impose an annual obligation to provide information on the status of negotiations with the three top dogs. With a view to the new fourth mobile network operator 1&1, Breko considers it essential that its frequency requirements are also taken into account in practice. The planned cooperative, shared use of frequencies below 1 GHz, for example, must be "to a sufficient extent - and thus cover more than the currently planned 2 × 5 MHz".

Breko has received support from the German Federation of Consumer Organizations (vzbv), among others. In its submission to the regulator, this association also calls for "competition-promoting measures" such as a service provider obligation. This is the only way to significantly promote infrastructure expansion on the market. Access barriers created by network operators for service providers must be dismantled in order to protect consumer interests in terms of choice, prices and quality.

(mma)