Con­sul­ta­tion on ex­tend­ing mo­bile spec­trum us­age rights

Year of issue 2024
Date of issue 2024.05.13

The Bundesnetzagentur has today published a draft document for consultation on extending usage rights for spectrum at 800 MHz, 1800 MHz and 2600 MHz. The Bundesnetzagentur plans to carry out competitive proceedings at a later point in time.

"Our primary objectives are improving coverage for all consumers and boosting competition. The extension of the spectrum usage rights would be accompanied by ambitious coverage obligations. A coverage obligation specifically for rural areas and an obligation relating to surface area would help to promote equivalent standards of living in urban and rural areas," said Klaus Müller, President of the Bundesnetzagentur. "Our aim is to further strengthen competition in the mobile market. The extension of the spectrum usage rights would therefore be combined with special arrangements for the fourth network operator and a requirement for negotiations with service providers."

Five-year extension

The spectrum usage rights expiring at the end of 2025 would be extended by five years. The aim is to bring the expiry dates of these usage rights in line with other usage rights that are due to expire at a later date. This would enable more spectrum to be made available for award at a later stage, in turn avoiding regulation-induced scarcity. In addition, market developments could be taken into account in later proceedings. This applies with regard to the fourth network operator, 1&1 Mobilfunk GmbH, as well. A larger framework for proceedings would offer the companies more opportunities for accessing spectrum.

Strengthening rural areas

The extension of the usage rights would be accompanied by obligations for the further rollout of the mobile networks. The ambitious but reasonable coverage obligations aim to strengthen rural areas in particular. At the same time, focus is being placed on uninterrupted mobile broadband coverage along transport routes.
Each of the three established mobile network operators would be required to provide the following minimum coverage:

• 50 Mbps for 99.5% of the surface area from 2030;
• 100 Mbps for 99% of households in rural communities in each federal state from 2029;
• 100 Mbps for all federal roads from 2029;
• 50 Mbps for all regional roads and inland waterways from 2029; and
• 50 Mbps for all district roads from 2030.

In the Bundesnetzagentur's view, coordinated action in rolling out public mobile communications and the new railway mobile communication system would be effective for achieving gigabit coverage along railway lines. Mobile and railway network operators would therefore be subject to a cooperation requirement.
Mobile network operators would be required to continue to report regularly on progress in rollout and on rollout plans.

Promoting competition

Having assessed the competitive conditions, the Bundesnetzagentur does not see any indications of an impairment of effective competition in either the wholesale or the retail market. Nevertheless, the Bundesnetzagentur envisages arrangements for promoting competition to accompany the extension of usage rights.

The Bundesnetzagentur considers a requirement for negotiations with service providers and mobile virtual network operators (MVNOs) to be necessary but reasonable. These negotiations must not be restricted to certain services, wireless technologies or applications.

In respect of the fourth network operator, 1&1 Mobilfunk GmbH, the Bundesnetzagentur is proposing a requirement for the three nationwide mobile network operators to allow 1&1 to share spectrum below 1 GHz on a cooperative basis. If one established network operator enables cooperative spectrum sharing, this can be credited to the other network operators. The Bundesnetzagentur is also considering imposing a negotiation requirement for the benefit of the fourth network operator. Finally, it is proposing a requirement for current spectrum leasing arrangements to be continued. Should 1&1 Mobilfunk GmbH not be granted national roaming by a nationwide network operator as from 2026, the Bundesnetzagentur reserves the right to order national roaming.

Competitive proceedings at a later date

The spectrum at 800 MHz, 1800 MHz and 2600 MHz would be made available for mobile communications at a later point in time together with spectrum at 700 MHz, 900 MHz, 1500 MHz and 1800 MHz for which the usage rights will be expiring in 2033.

Coverage obligations in these proceedings are to be based to a greater extent on the quality that end-users can actually experience. For example, the minimum usable data rates that consumers in densely and sparsely populated areas should be able to expect with a certain degree of probability would be set. Requirements for coverage inside buildings and in vehicles would also be defined.

Innovative instruments such as a negative auction are to be used with a view to improving coverage, in particular in rural areas.

Background

Spectrum usage rights in the bands at 800 MHz, 1800 MHz and 2600 MHz will be expiring at the end of 2025. The spectrum is currently being used by the three established mobile network operators and is contributing to the nationwide coverage of all end-users with high-performance broadband services.

Last September the Bundesnetzagentur published its framework for an interim decision, in which it considered extending the spectrum usage rights for an interim period and providing the spectrum together with other spectrum becoming available later in larger competitive proceedings.

Consultation

Comments on the consultation draft can be submitted until 8 July 2024.

The consultation draft and further information is available on the Bundesnetzagentur's website at: www.bundesnetzagentur.de/mobilebroadband.