Consultation on future use of mobile spectrum with expiring usage rights

The Bundesnetzagentur has today published for consultation the framework for an interim decision on the provision of spectrum in the bands at 800 MHz, 1 800 MHz and 2 600 MHz as from 2026.

"Our primary objectives are improving coverage for all consumers and boosting competition. We are considering extending the current usage rights with the aim of providing sufficient planning and investment certainty in the short term," said Klaus Müller, Bundesnetzagentur President. "We want to place better mobile coverage in rural areas at the centre of our requirements. A specific coverage obligation for sparsely populated regions is intended to promote equal living conditions in urban and rural areas." He added: "We also want to strengthen competition for the benefit of consumers and are presenting guidelines for this for discussion."

Extending current usage rights

In the Bundesnetzagentur's view, there are strong reasons against carrying out proceedings for an award as early as the end of 2025. Instead, it first envisages extending the usage rights that will expire at the end of 2025. Its initial proposal being put out for consultation is for an extension of five years. The spectrum would then be awarded together with spectrum for which usage rights will be expiring in 2033. The Bundesnetzagentur intends to take a decision on this in 2028.

Improving mobile coverage

Mobile coverage is to be improved further. The primary objective is to create equal living conditions in urban and rural areas. The Bundesnetzagentur is therefore considering a specific coverage obligation for rural areas to accompany the extension of usage rights. Each mobile network operator would be required to provide coverage with at least 100 Mbps for at least 98% of households in sparsely populated areas in each federal state by 1 January 2029.

The majority of households in Germany already have coverage with 100 Mbps, but there are still large differences between urban and rural areas. The percentage of households without any coverage is higher than average in rural areas in particular. In a number of federal states, coverage in sparsely populated areas from some network operators is as low as around 90%. The coverage obligation would target this and improve coverage for households in these sparsely populated areas by up to 8 percentage points.

The Bundesnetzagentur is also considering a coverage obligation for transport routes. This would also help to improve nationwide coverage and user experience. Each mobile network operator would be required to provide coverage with a transmission rate of at least 100 Mbps for all major roads by the end of 2028 and coverage with at least 50 Mbps for all minor roads and inland waterways of the federal core network. The aim is to provide uninterrupted mobile broadband coverage for all consumers using transport infrastructure.

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.

Service-based competition and national roaming

The Bundesnetzagentur is also considering arrangements for promoting service-based competition to accompany the extension of usage rights. It is weighing up various options, ranging from a negotiation requirement to an offer requirement.

The Bundesnetzagentur is also considering an arrangement for national roaming in the form of a negotiation requirement. This would accommodate the fact that the fourth network operator would not have access to further spectrum for several years if usage rights were to be extended.

Background

Last year the Bundesnetzagentur published its position paper on the provision of the spectrum with usage rights expiring at the end of 2025. It consulted on the possibility of carrying out award proceedings and on a proposed spectrum swap. Its latest considerations take account of the responses received from interested parties as well as current market developments.

Consultation

Comments on the framework for the proposed interim decision can be submitted until 6 November 2023.

The demand update and framework for an interim decision have been published at www.bundesnetzagentur.de/mobilesbreitband (in German).