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Mobile radio transmission mast: The distribution of so-called surface frequencies is to be reorganized
Photo: Patrick Pleul / dpa
Every four or five years, the Treasury can look forward to billions in extra income: the Federal Network Agency auctions off mobile radio frequencies for which network operators pay enormous sums.
The first auction in 2000, when telecommunications companies committed themselves to paying the equivalent of around 50 billion euros, is downright legendary.
In hindsight, that was way too much.
Subsequent auctions brought in significantly less.
In 2019, however, it was still an impressive 6.6 billion euros.
But that could be over for the time being, because the Federal Network Agency is indicating a change of course.
Before a meeting of the regulatory authority's advisory board on Monday, the outgoing head of the authority, Jochen Homann, said that he could imagine "extending short-term and conditionally" mobile frequencies and only carrying out an award procedure at a later date.
The frequencies are in demand
At the beginning of 2026, spectrum will be free in various frequency bands. The "low band" in the low 800 megahertz range is particularly in great demand - these frequencies are important for area coverage, since antennas can transmit very far with them. But the situation is tricky, because the "low band" has so far been divided into three frequency packages, the current users are Deutsche Telekom, Vodafone and Telefónica (O2). Three for three - so far a simple matter. But now 1&1 is the fourth network operator to take part. The newcomer is currently setting up his own network and definitely wants to have space spectrum for it.
According to the Federal Network Agency, dividing the spectrum into quarters and not thirds is out of the question.
"Technically, it doesn't make sense to symmetrically split the spectrum at 800 megahertz between four network operators," says Homann.
The state would have a strong position at the auction, which was actually expected for 2023 or 2024: a scarce good is met with great interest.
The auction proceeds should go through the roof.
However, it is also clear to the Federal Network Agency that this would not be conducive to the goal of enabling good mobile phone coverage.
After all, the mobile operators would then have less money in the till for the network expansion.
In any case, Homann warns that the auction of said area spectrum could "possibly lead to strong bidding competition".
That, according to the subtext, should be avoided.
1&1 wants a seat at the table
So what to do?
The top dogs are in favor of extending the usage rights, which expire at the beginning of 2026, by five years.
After that, additional frequencies would be available and an auction could take place "under reasonable conditions," says a Vodafone spokesman.
The competitor 1&1 has a completely different opinion.
"In addition to coverage outside of large cities, the so-called low-band frequencies are also essential for indoor coverage," says a spokeswoman.
"In order to be permanently competitive as the fourth network operator, it is imperative for 1&1 to be able to acquire low-band frequencies in the 800 megahertz range in addition to the 5G frequencies auctioned in 2019."
The Vodafone spokesman points out that 1&1 already has access to the Telefónica network and can simply continue to use it.
In fact, 1&1 has so far been a so-called virtual network operator who rents capacities from other networks, especially from Telefónica.
Even if 1&1 will probably activate its own network for use in 2023, the companies will remain connected via a “national roaming” contract: So that 1&1 customers are not stuck in dead spots in large parts of the country because the new network operator is in favor of nationwide expansion takes time, they are connected to the O2 network outside of the 1&1 network.
However, only with its 4G network, not with the more powerful 5G network.
In a paper from the network agency, which is available to the dpa news agency, the authority emphasizes that the frequencies should be made available “in an open, objective, transparent and non-discriminatory process”.
1&1 should also have the opportunity to "build new networks, offer mobile phone services and establish itself as a mobile network operator".
How this is to be done is still unclear.
The question of equal opportunity access to frequencies for the fourth network operator would have to be clarified, says network agency boss Homann vaguely.
Auctions are not off the table
Different signals are coming from politics. The chairman of the network agency advisory board, Lower Saxony's environment minister Olaf Lies (SPD), advocates an extension. An SPD paper, which also reflects Lies' position, says that the frequency users could be obliged to meet further ambitious conditions as part of an extension, "without depriving the companies of investment funds through a costly auction". At the end of the decade, a decision should then be made on how to proceed - "then the instrument of the auction could be used again in a meaningful way at this point in time," says the SPD paper.
The FDP member of the Bundestag Reinhard Houben, who also sits on the advisory board, is against an extension.
Rather, there should be a »negative auction«.
In such a procedure, the company that wants the least government funding and is committed to extensive expansion obligations prevails.
According to Houben, progress would be made with an "efficient auction design" and strong controlling.
The network agency will probably only decide in 2023 whether it will rely on the previous auction model, the extension of use or another approach.
The question of how to proceed is "open and not yet ready for a decision," emphasizes Homann, head of the authorities.
»Before a decision can be made, a large number of procedural questions must be clarified.«
By Wolf von Dewitz, dpa