An additional five years of usage rights in exchange for stricter rural coverage obligations
Extending spectrum usage rights
On 13 September 2023, BNetza published an interim decision (on which it is now consulting) on the allocation of frequencies in the 800MHz, 1800MHz and 2.6GHz bands from 2026. This takes into account stakeholder responses to its position paper released last year, as well as recent market developments. In BNetzA’s view, there are strong reasons against reawarding spectrum in these bands (held by Deutsche Telekom, O2 and Vodafone) before the end of 2025 when the current licence terms expire. Instead, it first envisages extending usage rights for a period of five years, with the aim of providing sufficient planning and investment certainty in the short term. These frequencies would then be awarded together with spectrum for which usage rights will expire in 2033. The regulator intends to take a decision on this in 2028.
A particular focus on improving coverage in rural areas
The regulator has made delivering better mobile coverage in rural areas a top priority as it seeks to close the digital divide. BNetzA is therefore considering a specific coverage obligation to accompany the extension of usage rights. Each operator would be required to provide 100Mbps mobile broadband coverage to at least 98% of households in sparsely populated areas in each federal state by 1 January 2029. In some of the locations, coverage is currently as low as 90%. The regulator is also considering a coverage obligation for transport routes, which would mandate cooperation between mobile and railway network operators. Each mobile operator would be required to provide coverage of a 100Mbps service across all major roads by the end of 2028 and 50Mbps for all minor roads and inland waterways of the federal core network.
BNetzA considers national roaming to support fourth player
As part of the consultation, BNetzA is exploring ways to promote service-based competition and is weighing up various options, ranging from a negotiation requirement to an offer requirement. One negotiation requirement being considered relates to an arrangement for national roaming. This would accommodate the fact that Germany’s fourth network operator 1&1 would not have access to further spectrum for several years if usage rights were to be extended. BNetzA has to date made no regulatory statement about national roaming nor put any agreement under review, although there are partnerships currently in place. For example, the Telefónica/E-Plus merger in 2014 required Telefónica to offer access to its network to a new entrant (among other conditions). Comments on the framework for the proposed decision can be submitted until 6 November 2023.
