The decision to forgo a billion-dollar auction of mobile network frequencies is getting closer. According to an internal letter from the Federal Network Agency, the agency wants to extend certain usage rights instead of auctioning them off.
Until now, it has been common practice for the regulatory authority to auction off usage rights to network operators every four to five years and collect billions in return: in 2019, this figure was around 6.6 billion euros, and in 2000, around 50 billion euros. When the extensions are made, the federal government only collects relatively small fees. However, the establish mobile operators must commit to improving their networks in rural areas.
The Federal Network Agency plans to present the relevant rules to its advisory board. Which includes politicians. On May 13. According to the internal letter. There will be a “competitive Turkey Phone Number List procedure” later – i.e. an auction that will only take place in a few years. The internal letter, which is available to the dpa, does not contain any further details. It is the agenda for the advisory board meeting in question. A spokesperson for the agency did not want to comment on the document.
The rules have not been finally decid
It is a “consultation draft” that market participants can comment on in the coming months. However, the draft is considered a preliminary decision and a change of heart by the authority is unlikely.
The extension of the usage rights would be a tailwind for the long-established network operators Deutsche Telekom, Vodafone and O2 Telefónica. For them, everything would remain as before. The newcomer 1&1, which auctioned its own radio spectrum in other frequency bands for the first time in 2019. Would be left empty-handed. 1&1’s mobile network is still very small, and expansion has so far been slow. Where 1&1 does not have its own antennas – i.e. in most areas of Germany – its customers are currently connected to the O2 mobile network and in the future to the Vodafone network. As part of a national roaming contract.
The mobile phone network uses various frequency cell phone number listing bands that have different strengths and weaknesses: the higher the band. The more powerful it is – so many people can be in a cell at the same time and everyone can have a good signal. However, the range of the antennas decreases the higher the band is – so many more radio masts have to be built than in the lower frequencies. Which are also call area frequencies. They are particularly important in rural areas. These frequencies – the 800 megahertz band – are now the focus. Usage rights for them expire at the end of 2025.
According to the established network operators
There is too little spectrum in this radio band to be easily Bulk Database divide between four rather than three users. The Federal Network Agency agree with this view. The market leaders reject a frequency swap with spectrum from other bands – this was the model that 1&1 had called for. Last year, the Bonn-base authority had already publish its considerations for foregoing the auction. Now it is clear that it has continued to pursue the plan.
