Germany’s regulator, BNetzA, will hold the session today but is minded to extend the 800MHz, 1,800MHz and 2,600MHz bands without an auction
German regulator, Bundesnetzagentur (BNetzA) will hold a public hearing on the extension of frequencies in the 800MHz, 1,800MHz and 2,600MHz ranges on 9 January 2025, at the request of freenet AG. Freenet resells operators’ offers and runs its an MVNO on the Vodafone network, as well as offering TV services.
Source: freenet, as end of 2023
The stipulations under consideration are based on the draft consultation published in May 2024. At that time, BNetzA added new remedies to overcome 1&1’s complaints that extending existing frequency usage rights for Deutsche Telekom, Vodafone and Telefónica was unfair. In this agreement, a transitional extension of the frequency usage rights was already being considered.
Expiring rights
At the end of 2025, usage rights in the 800 MHz, 1,800 MHz and 2,600 MHz bands expire. The frequency usage rights are to be extended by five years, according to the regulator. Its aim is to align the terms of these usage rights with usage rights that expire later. This will allow more frequencies to be made available for allocation in a further step and avoid regulation-induced shortages.
The extension of the usage rights will require operators to expand mobile networks and BNetzA intends to add conditions to the extended usage rights to promote competition.
The frequencies are used by the three established mobile network operators – Deutsche Telekom, Vodafone and Telefónica/O2 – and contribute to the nationwide supply of all with high-performance broadband connections. The public hearing will be freenet’s chance to present its concerns after which BNetzA intends to decide as soon as possible on the provision of the mobile radio frequencies “to create legal and planning certainty for the market,” according to its statement.
Better communications, more competition
“Our goals are to improve mobile communications and further promote competition. We want to link the extension of the frequencies to ambitious coverage requirements. A special focus is on better coverage of rural areas,” said BNetzA’s President, Klaus Müller ahead of the public meeting.
“We want to further strengthen competition in the mobile communications market. The extension is to be combined with special regulations for 1&1. The negotiation requirement for service providers is to be supplemented by guardrails that are intended to promote effective negotiations.”
In March 2024, before BNetzA’s revisions, freenet published a legal opinion which came to the “unequivocal conclusion that the recently discussed frequency extension without a non-discriminatory access obligation would be contrary to European law”. It argued that the European ban on state aid marks the limit of the BNetzA’s administrative scope for action. Further, in the event of a frequency extension, the BNetzA’s scope for decision-making in the area of promoting competition would be reduced to zero.
In August, the Cologne Administrative Court orally announced its judgment in the proceedings concerning the decision of the President’s Chamber of the BNetzA of 26 November, 2018 on the award and auction rules for the auction of frequencies particularly suitable for 5G mobile communications in the 2 GHz and 3.6 GHz ranges held in 2019. It was decided that the award rules of the President’s Chamber decision are unlawful. The BNetzA was obliged to issue a new decision.
Interim decision
The regulator has subsequently published a handout with the “contemplated stipulations” of a decision of the President’s Chamber, ahead of the meeting. This confirms there will be no auction in the 800 MHz, 1,800 MHz, and 2,600 MHz bands, which are set to expire on 31 December 2025.
Existing frequency usage rights in the paired bands of 800 MHz, 1,800 MHz, and 2,600 MHz, currently valid until 31 December 2025, will be extended upon application by the assignees until 31 December 2030.
Similarly, usage rights in the paired sub-bands of 1,760–1,785 MHz and 1,855–1,880 MHz, valid until 31 December 2033, will be extended until 31 December 2036, provided legal assignment criteria are met.
Aligning spectrum permissions
The aim is to align spectrum usage periods, enabling a comprehensive competitive process for post-2030 usage, alongside other rights expiring in 2033, 2036, or potentially becoming available.
Conditions include network extensions to include: 99.5% of the nationwide area to be covered with at least 50 Mbps (by 2030); 99% of households in sparsely populated areas to receive at least 100 Mbps (by 2029); continuous 100 Mbps service along federal roads (by 2029); and 50 Mbps service for state, district roads, and inland waterways (by 2030). Frequency holders must participate in infrastructure expansion, support rail networks, and collaborate on shared spectrum use below 1 GHz.
Operators must also engage in fair negotiations for national roaming and shared spectrum utilisation, ensuring compliance with regulatory guidelines. Quarterly updates on frequency use, network development, and expansion plans must be submitted to the BNetzA.