5G spectrum fees for local usages
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Date of issue 2019.10.31
The Bundesnetzagentur, in agreement with the relevant ministries, has set the fees for 3.7 3.8 GHz spectrum for local usages. The Frequency Fee Ordinance will be amended accordingly and published shortly in the Federal Law Gazette.
Fees formula
Each assignment fee will be calculated individually using the following formula:
The fee comprises the following elements: a base amount of €1,000, the assigned bandwidth (B: from 10 MHz to 100 MHz), the assignment term (t: in years or fractions of a year based on each month commenced), and the surface area covered by the assignment in square kilometres (broken down into a1 for land for settlements and transport infrastructure and a2 for other types of land).
Factors in the fees formula
The fees formula is designed to ensure optimum and efficient use of the spectrum.
The larger the bandwidth, the higher the fee, and the larger the area covered by the usage, the higher the fee. The base amount has been chosen so as not to create an obstacle for business models such as those of start-ups, SMEs or agricultural enterprises.
The assignment term is also included as one of the factors in the formula to encourage potential users to apply for assignments only for the period in which they actually plan to use the spectrum.
Frequency assignments covering land for settlements and transport infrastructure are more expensive than frequency assignments covering other types of land. This takes account of the need for frequency coordination and means that usages in less densely built-up areas remain economically interesting.
The definitions for categorising land are based on those used by the German Environment Agency and the Federal Statistical Office (https://bit.ly/36n41FY).
Launch of the application procedure
The draft document setting out the procedures for the assignment of spectrum for local broadband and the application forms are available (in German) on the Bundesnetzagentur's website (www.bundesnetzagentur.de/lokalesbreitband).
The path is now clear for the realisation of innovative 5G local solutions for start-ups, agricultural businesses, SMEs and industrial enterprises.