Germany shelves spectrum auction in bid to extend existing frequencies

Telefonica Deutschland Holding AG

13/05/2024 13:32

BERLIN, May 13 (Reuters) - Germany's network agency
Bundesnetzagentur decided not to give new frequency usage rights
to mobile phone operators at an auction normally worth billions
of euros, according to a draft presented by the regulator on
Monday. 
    Instead, it decided to extend existing frequencies for five
years as it wants mobile operators to improve their current
network infrastructure, especially in rural areas, where mobile
phone connectivity is not that widespread. 
    The auction, where the agency sells frequencies worth
billions of euros, normally takes place every four to five years
and is important for mobile phone operators as it allows them to
extend their network coverage and get more clients. 
    The decision not to auction off the new rights particularly
hits smaller operators like 1&1  1U1.DE  as their network reach
is relatively small compared to giants like Deutsche Telekom
 DTEGn.DE , Vodafone  VOD.L  and O2 Telefonica  TEF.MC .
    Bundesnetzagentur plans to oblige the three bigger providers
to allow 1&1 to co-use their frequency capacities, to smoothen
the competition disadvantages for the new player.
    Now members of business and research communities as well as
the general public will have until early July to express their
opinions on the draft before it gets a final approval in the
autumn.   
    
     
  

    
    

 (Reporting by Andrey Sychev and Hakan Ersen, Editing by
Friederike Heine)
 ((andrey.sychev@thomsonreuters.com;))