Some of those in the top echelons of the network operators already see the storm of the next frequency allocation looming – which is likely to take place by auction again. (Picture: Frank Cone / Pexels)

The Federal Network Agency has published a new position paper on the future allocation of certain mobile radio frequencies. 

At the end of 2025, the allocations for the rights of use of important mobile radio frequencies at 800 MHz, 1,800 MHz and 2,600 MHz will end. Thus, a decision by the Federal Network Agency on the future provision of these frequencies is needed promptly. According to a press release, the Federal Network Agency has published a new position paper on this issue. It contains initial assessments regarding the further procedure. Due to the obvious shortage of frequencies, the Federal Network Agency prefers an award procedure – specifically, again an auction of the coveted frequencies.

A non-discriminatory procedure with a proposal for a “frequency swap”

In the 800 MHz range, the Federal Network Agency proposes a “frequency swap” to meet the interests of all market participants.

“We want to manage the balancing act between competition and coverage. With the proposal of a frequency swap, we want to balance the interests of the established mobile operators and the market entrants. The existing LTE coverage is to be maintained and at the same time we want to grant equal opportunity access to spectrum. The most important rule is that there should be a fair and transparent procedure. Now it is the turn of the market participants.”
Klaus Mueller, President of the Federal Network Agency

The rights of use at 800 MHz would expire at the end of 2033 instead of at the end of 2025. The rights of use at 900 MHz would expire at the end of 2025 instead of at the end of 2033. Instead of the 800 MHz frequencies, the 900 MHz frequencies would then be allocated. Such a frequency dip would secure the existing LTE coverage based on the 800 MHz frequencies in the longer term. At the same time, new entrants would also have a chance to obtain a spectrum in the range below 1 GHz.

The impetus for competition and better broadband coverage

The Federal Network Agency wants to set impulses to further improve broadband coverage. A greater focus will be placed on the user perspective. In the position paper, the Federal Network Agency presents a number of proven and new measures. In addition, the position paper provides considerations on competition at the service level. In this regard, considerations on various instruments are also presented for discussion.

The Federal Network Agency is now putting the position paper out for public consultation. Comments can be submitted until 21 November 2022.

Background to the proceedings

The existing rights of use in the 800 MHz, 1,800 MHz, and 2,600 MHz ranges are limited until the end of 2025. Now the best way to make the frequencies available for use from 2026 onwards is to be paved.  In order to give all market participants investment and planning certainty at an early stage about how the frequencies will be made available again, the Federal Network Agency already opened the discussion in the summer of 2020 with the publication of the Frequency Compass for comments. This was followed in the summer of 2021 by the public hearing on the principles and scenarios for the provision of the frequencies 800 MHz, 1,800 MHz, and 2,600 MHz.

Subsequently, the plans of the Federal Network Agency were concretised within the framework of the orientation points, which were published in January 2022. Interested parties were also able to comment on these, and forecast needs were expressed by the companies. The comments submitted were incorporated into the position paper published on 22.9.2022.

The position paper is published on the website of the Federal Network Agency.