German Telcos Criticize Government's 5G Auction Rules
November 27 2018 - 10:35AM
Dow Jones News
By Patrick Costello
German telecoms operators have criticized auction rules for 5G
spectrum approved late Monday by the Federal Network Agency,
Germany's national telecoms regulator, saying the agency's rules
are expensive and lack a legal basis.
Telefonica Deutschland AG (O2D.XE)--one of Germany's three main
mobile operators--called the regulator's conditions a "dubious
compromise" that runs counter to operators' interests.
"Network operators are being deprived of funds with an expensive
auction policy," said Telefonica Deutschland, "while at the same
time we are asked to invest massively in coverage areas."
The 5G mobile standard is widely expected to serve as the basis
for nascent technologies including self-driving cars and networked
factories. Companies now have until Jan. 25, 2019, to register for
the spectrum auctions being held next spring, said the agency.
Operators will be expected to fulfill certain conditions for 5G
spectrum, such as ensuring 98% of German households have access to
100 Mbps internet connection by 2022, said the agency.
The regulator did not include national roaming requirements
obliging the three main operators--Telefonica Deutschland, Deutsche
Telekom AG (DTE.XE) and Vodafone Group PLC (VOD.LN) subsidiary
Vodafone Germany--to open their mobile networks up to competitors
as a condition.
Instead, network operators are required to negotiate
"cooperation agreements" with competitors over the use of mobile
sites.
Germany's main network operators opposed national roaming
regulations. Deutsche Telekom chief executive Tim Hoettges said
last month these obligations would stifle investment, as companies
couldn't recoup costs if they had to share infrastructure with
competitors.
But United Internet CEO Ralph Dommermuth called national roaming
an "absolute precondition" for the creation of a fourth mobile
operator in Germany--something German cartel authorities have said
is "desirable" for competition purposes in the past--to be
financially feasible.
The internet provider--which doesn't have its own wireless
network but has expressed interest in 5G licenses--will now take a
closer look at the auction rules before deciding whether to
participate, a United Internet spokesman said.
Still, Vodafone Germany said the agency lacked a legal basis
even for ordering operators to negotiate the shared use of mobile
infrastructure with competitors.
"This legal basis assumes one company has a dominant position in
the market," said Vodafone. "But Germany has three more or less
equally large nationwide operators as well as numerous resellers
that take up 23% of the market."
Write to Patrick Costello at Patrick.Costello@dowjones.com
(END) Dow Jones Newswires
November 27, 2018 10:20 ET (15:20 GMT)
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