Federal Network Agency presents scenarios for the provision of mobile radio frequencies

On June 21, the Federal Network Agency published “Principles and scenarios for the provision of frequencies in the 800 MHz, 1.8 GHz and 2.6 GHz ranges“. In view of the limited term of the rights of use in these frequency ranges until the end of 2025, the paper presents five scenarios which could in principle be considered for subsequent use of the frequencies. These are as follows:

• the auctioning of frequencies (previous frequency allocation practice)
• the extension of the rights of use beyond 2025,
• a combination of the two aforementioned elements,
• the application of an operator model, in particular on the area frequencies around 800 MHz and
• a call for tenders for the frequency ranges to be reallocated

The Federal Network Agency’s aim with the reallocation is to strengthen broadband coverage for the population, primarily in rural areas, and at the same time to stimulate competition at the infrastructure and service level in the long term. In this regard, the “scenario paper” also considers a negative auction for the first time. In this case, the bidder with the lowest funding requirement for mobile network expansion in previously unprofitable areas would be awarded the contract.

The Federal Network Agency is giving market participants and interested parties until August 23, 2021 to comment on the scenario paper and to comment on the proposed spectrum provision measures.