5G network expansion Four mobile phone companies taking part in March auction

Bonn · Participants in the auction are calling for greater legal security for the 5G expansion as well as a closer alliance between politics and business .

 In Montabaur ist United Internet zu Hause, das über die Tochter 1&1 Drillisch mitbietet .

In Montabaur ist United Internet zu Hause, das über die Tochter 1&1 Drillisch mitbietet .

Foto: dpa

In the latter half of March, the Federal Network Agency in Bonn intends to auction off the frequencies for the new 5G mobile communications generation. The deadline expired on Friday; four applicants registered. The next step is for the Federal Network Agency to decide on the approval of the applications. The new mobile communications technology, which is still in the development stage, is of great importance for industry in particular. It is intended to open up completely new fields of application and enable data transmission in self-driving cars or in telemedicine, for example. Data transmission would be a hundred times faster than in the current LTE network.

As was to be expected, all the existing mobile network operators - Deutsche Telekom, Telefonica and Vodafone - threw their hats in to the ring on time. Although they all say that they are dissatisfied with the auction conditions imposed by the Federal Network Agency, the operators are of course forced to purchase frequencies for the new generation of mobile phones if they want to continue to survive on the market. Newcomer 1&1 Drillisch AG has joined them. On Thursday, the mobile discounter - which belongs to United Internet from Montabaur near Koblenz - announced that it intends to participate in the auction through its subsidiary Drillisch Netz AG.

Ralph Dommermuth, CEO of United Internet AG, said: "In recent months we have been promoting greater competition and the resulting impetus for a rapid 5G expansion in Germany”. Now the company wants to establish the foundations for being the fourth network operator in the mobile communications market to contribute to Germany's success in becoming a leading 5G market.

As a newcomer, the company will be subject to less stringent conditions concerning the expansion rate of the mobile network. The auction conditions also deal with roaming: Customers of a mobile network operator are automatically redirected to the competitors’ networks if they have not yet expanded at a particular location. The Network Agency gives the operators a "bid to negotiate collaborations" and wants to actively support this as an "arbitrator".

On Friday, Deutsche Telekom called for an all-embracing concept for the future nationwide supply of 5G, which the Federal Network Agency and the responsible ministries should develop together with the most important infrastructure providers, such as rail and road authorities, and the mobile phone operators. This must include the mobile communications spectrum required for coverage, license terms and targeted support in rural regions where expansion is not economically justifiable.

"We want to enable digital participation with a billion-euro investment program in 5G," said Telekom spokesman Andreas Middel. This applies to both cities and rural areas. “However, for the successful establishment and expansion of 5G networks, we need legal certainty and appropriate framework conditions," stated Middel. He says that these would unfortunately not be provided by this auction. The award conditions referred to the possibility of future requirements for local roaming under the new EU legal framework. This would enable the Network Agency to intervene in the negotiations on roaming and to order agreements on access to the network infrastructure through official channels, which would undermine commercial agreements.

Legal uncertainty is poison for investments. According to Middel, the award conditions were imprecise and disproportionate on important points. "By making our complaint we are striving for an improvement in these conditions", he said.

Telefónica Deutschland is also calling for amendments: "A more reliable alliance between politics and business is more important than ever", said CEO Markus Haas. The company needs clear and fair framework conditions that are above all supportive to investment. On Friday, Volker Petendorf, spokesman for Vodafone Germany, also stressed that Germany needs a first-class 5G infrastructure that will keep the entire economy at the top in the future: "With a policy that is conducive to investment, 5G can become a network revolution that brings new applications to numerous industries and sectors and improves our everyday lives in many areas.”

The president of the Bitkom industry association, Achim Berg, said that participation in the auction required particular entrepreneurial courage: "Never before has a frequency auction been afflicted with so many uncertainties". (Original text: Claudia Mahnke, Translation: Caroline Kusch)

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