BNetzA’s consultation shows it has listened to newcomer 1&1’s complaints around extending existing frequency usage rights for Deutsche Telekom, Vodafone and Telefónica
German regulator, Bundesnetzagentur (BNetzA), published a new draft consultation on the extension of frequencies in the 800MHz, 1,800MHz and 2,600MHz ranges, which has added new remedies to overcome 1&1’s complaints that extending existing frequency usage rights for Deutsche Telekom, Vodafone and Telefónica was unfair.
Germany’s fourth mobile network 1&1 – since December – published a report in January, slamming BNetzA’s September consultation to consider extending existing licences, suggesting it amounted to “an action tantamount to subsidisation in the billions of euros of the three established network operators.”
In the new consultation, BNetzA is still minded to extend the licences by five years which it said would align the terms of these rights of use with rights of use that expire later. This will allow more frequencies to be allocated further, and it believes regulation-induced shortages will be avoided. “In addition, market developments can be included in a later procedure. This also applies to the fourth network operator 1&1. A larger procurement framework offers companies more opportunities to gain access to spectrum,” stated the regulator.
The frequency spectrum at 800MHz, 1,800MHz and 2,600MHz is to be made available for mobile communications at a later date, together with the rights of use from the 700MHz, 900MHz, 1,500MHz and 1,800MHz ranges, which expire in 2033.
Crucial concession to 1&1
However, this time the regulator said the extension will be linked to a commitment by Telefónica to continue the transfer of 2x10MHz mid-band spectrum to 1&1. In addition, the three incumbent network operators will be obliged to make at least 2x5MHz of their low-band (sub 1GHz) spectrum available to 1&1 for co-operative, joint use. The agency is calling for corresponding offers on fair terms.
“We are open to a co-operative solution. It is important that we can utilise a sufficiently large amount of frequency at market conditions in order to adequately supply our more than 12 million customers,” said 1&1 CEO Ralph Dommermuth (above). “Only then can we fully leverage the advantages of our innovative Open RAN technology and ensure the competitiveness of our daily expanding 5G network.”
The regulator said that if 1&1 Mobilfunk is not granted national roaming by a nationwide network operator from 2026 onwards, it reserves the right to order national roaming.
Rural emphasis
Like its September consultation BNetzA has added several conditions to stimulate rural rollouts. Each of the three incumbent mobile network operators is to have at least:
> from 2030, 99.5 percent of the licensed area provided with 50Mbps
> from 2029, 99 percent of households in municipalities in rural areas provided with 100Mbps in each federal state
> from 2029 all federal highways provided with 100Mbps,
> from 2029 all state roads as well as inland waterways provided with 50Mbps
> from 2030 district roads provided with 50Mbps
Regarding gigabit coverage along railway lines, the BNetzA considers: “a joint approach to the expansion of public mobile communications and the new railway radio to be expedient. To this end, mobile phone and rail network operators are to be obliged to cooperate.”
“Our primary goals are to improve the supply for all consumers and to further promote competition. The extension of frequencies is to be linked to ambitious coverage requirements,” said BNetzA president Klaus Müller. “A specific coverage requirement for rural areas and a land requirement can promote equivalent living conditions in urban and rural areas.”
He added: “We want to further strengthen competition in the mobile communications market. To this end, the extension is to be combined with special regulations for the fourth network operator and a negotiation requirement for service providers.”
Comments on the draft consultation can be submitted until 8 July 2024.