Andreas Scheuer engaged in dishonest practices during the 5G award ceremony.
In 2019, the Grand Coalition once again put up for auction the frequencies for the 5G mobile network. Besides the big players like Telekom, O2, and Vodafone, smaller providers also applied for subsidized co-use. However, they didn't make the cut - seemingly due to the political influence of Digital Minister Scheuer. Now, it's back to the negotiation table, as per a court ruling.
The issue at hand is a request from smaller mobile providers for what's known as a service provider obligation: The major telecommunication companies with their own network infrastructure - Telekom, Vodafone, and Telefónica - would be required to let smaller providers without their own network use the networks at regulated prices. Media reports hinted at Minister Scheuer deliberately hindering this.
In reality, the guidelines set by the Federal Network Agency in 2018 only stated that the major providers must discuss co-use with the smaller ones. In practice, this translates to smaller mobile providers only being able to offer 5G plans at higher prices today. Lack of competition contributes to higher mobile phone prices in Germany.
The Federal Network Agency: Not an Independent Entity
Smaller providers had filed lawsuits against the allocation rules, but lost in lower courts. However, in 2021, the Federal Administrative Court ruled differently and sent the case back to Cologne. The Cologne court was tasked with examining whether the Federal Network Agency had a bias in its decision, given the indications of improper political influence.
The Cologne court confirmed these suspicions in its ruling this week. The influence of Scheuer's ministry (BMVI) was evident and so powerful that it potentially damaged the EU-guaranteed independence of the Federal Network Agency, as the court pointed out. It's likely that the Federal Network Agency would have made a different decision without the "massive" influence of the BMVI.
Despite the court ruling, the major telecommunication companies have yet to actively engage in discussions about co-use with smaller providers, leading to continued high prices for 5G plans provided by the smaller mobile providers. The influence of Digital Minister Scheuer and his ministry on the Federal Network Agency's decision-making process has been widely criticized, as it violates the EU-guaranteed independence and potentially impacts fair competition in the 5G market.
