German Federal Network Agency issues warning to network operators

Mobile network operators could face expensive fines for the first time if they fail to meet the requirements, warns the German Federal Network Agency. Fines of up to 50,000 euros per site are possible. Further conclusions must also be drawn for future frequency allocations.

On its latest sitting, the Advisory Board of the Federal Network Agency came to a landmark conclusion. They have reaffirmed the importance of the coverage conditions from the last spectrum auction for mobile communications coverage in Germany. Furthermore, they have even called for a detailed review of their fulfilment. These conditions were previously set in 2019 in consultation with the Advisory Board, with a deadline of December 31, 2022.

“Implications for future frequency allocations likewise”

Chairman, Olaf Lies

Chairman of the Advisory Board, Olaf Lies elaborated on the reason behind this action, saying: “Reliable, nationwide mobile communications coverage is of fundamental importance both for the economy and for equal living conditions in Germany.” He continues, “insofar as these should not have been fulfilled, it is the task of the Federal Network Agency to examine noticeable consequences for the mobile network operators concerned.” Chairman Lies goes on to conclude that the Federal Network Agency should also take into account, the conclusions from non-compliance, for the form and design of future frequency allocations.

1&1 could be fined up to 50 million Euros

Golem.de states, that in the case of terra incognita (Latin: unknown territory), three network operators missed the mark by a wide margin. These are areas where none of the mobile networks achieves a data rate of 100 Mbit/s. Instead of 167 own sites in such an area by December 31, 2022, Vodafone reported only 86, Telefónica 61, and Telekom 38.

The Federal Network Agency is currently reviewing the network operators’ data. In 2022, it already had its testing and measuring service record coverage on a random basis over an area of around 15,000 km² and a measuring distance of about 50,000 km. Along the A7 federal autobahn, mobile coverage was measured in both directions, with a driving distance of approximately 2,000 km.

“The Federal Network Agency currently intends to impose a fine of up to EUR 50,000 per site,” said a letter from the regulator to its advisory board, obtained by news agency dpa. Since 1&1 Mobilfunk has only set up three antenna sites instead of 1,000, a fine of up to 49.85 million euros could be imposed here.

Review by Federal Network Agency may take some time

In the 2019 spectrum auction, mobile network operators were required to provide at least 98 percent of households in each federal state, all federal highways, and passenger-intensive federal roads and railroads with at least 100 Mbit/s coverage.

In addition, 500 base stations had to be put into operation to cover so-called white spots and 1000 base stations each for 5G applications. Fulfilment of the requirements for traffic routes is partly dependent on the cooperation of third parties. Here, the Council sees a need for more intensive coordination between the Federal Network Agency and players such as Deutsche Bahn AG.

The Federal Network Agency is responsible for reviewing compliance with the conditions. This review will take some time, especially as the fulfilment of conditions can only apply to the extent that is legally and actually possible. This must be checked for each individual case, for example, with regard to coverage of the terra incognita.

You can find the link to the advisory’s resolution here.