Mobile Network Expansion to Face Tougher Requirements by Network Agency
The Federal Network Agency is considering granting mobile network providers an exemption from future auctions and extending their use of frequencies. In return, these companies will need to meet expansion targets, with the aim of improving coverage in rural areas.
Currently, major German telecom providers can continue using their existing mobile frequencies without participating in new auctions. However, they will be subject to conditions if their usage rights are extended by five years. The primary objectives are to enhance coverage for all consumers and promote competition, which would benefit rural regions.
Deutsche Telekom, Vodafone, and O2 Telefonica will be required to provide at least 99.5% of Germany with a minimum 50 Mbps connection by the end of the decade. Additionally, they must offer connections with speeds of 100 Mbps to 99% of rural households in every state by 2029.
These requirements mark the first time area-based obligations have been implemented, rather than relying on household-based statistics. This shift should ensure better coverage for sparsely populated areas. Klaus Müller, head of the Authority, defended the targets as "ambitious but appropriate."
Despite the Authority's claim that 99% of Germany's area is already covered by at least 50 Mbps, this figure is disputed in industry circles. The actual lack of coverage varies depending on measurement parameters. According to the Authority's website, only 91.6% of Germany was covered by Deutsche Telekom's 4G mobile communications at the beginning of the year, while Vodafone covered 91.3% and O2 covered 86.4%.
To counteract the competitive disadvantages of new entrant 1&1 in network operations, the Authority also proposes obliging the three other providers to allow 1&1 to share the use of specific frequency ranges. If one of the nationally active groups enters an agreement with 1&1, the requirement will be considered fulfilled. Last year, 1&1 chose to end its relationship with Telefonica and entered a "national roaming" agreement with Vodafone instead.
The public, businesses, science, and society have until early July to comment on the Authority's draft. Following consultation with the parliament's advisory board and the federal states, the executive committee will make the final decision.
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The telecom companies, aiming to retain their mobile frequencies, will need to invest in expanding their coverage using mobile radios in rural areas to meet the ambitious expansion targets set by the Federal Network Agency. By 2029, Deutsche Telekom, Vodafone, and O2 Telefonica must ensure that at least 99.5% of Germany has a minimum 50 Mbps connection and provide 100 Mbps connections to 99% of rural households in every state, using mobile radio technologies.
Source: www.ntv.de
