The German regulator has published the criteria to set the price for 3.7–3.8GHz airwaves.
Background: The German regulator BNetzA has recently been active in awarding spectrum for 5G. In June 2019, it completed the auction of the 2.1GHz and 3.4–3.6GHz frequencies. While preparing that auction, the regulator was also setting the framework for ‘local broadband’ licences in the 3.7–3.8GHz band; these are for regional and local wireless networks, for the provision of telecoms services. In March 2019, BNetzA published the “Framework Conditions for the Future Application Procedure”.
How will the fees be calculated? Last week, BNetzA published the criteria it will adopt to calculate the fees for the use of the ‘local broadband’ frequencies. These will vary case-by-case, and will be set out according to a formula which takes account of the base amount (€1000), the bandwidth used (between 10MHz and 100MHz), the duration in years, and the area over which the spectrum is used.
Time to start using the spectrum: Industry has generally welcomed BNetzA’s decision on the fees. Qualcomm’s SVP for Government Affairs and Public Policy EMEA defined them as ‘reasonable’; BREKO, an association including hundreds of network operators, issued a similar statement welcoming the “moderate” fees tailored on the needs of medium-sized businesses. BNetzA will now amend its Frequency Fee Ordinance accordingly, with immediate entry into force during November 2019. The regulator plans to announce the start of the process to apply for the spectrum shortly.
