The Federal Network Agency wants to extend the frequency use rights of the three established mobile network operators Deutsche Telekom, Vodafone and Telefonica (O2) in the 800 MHz, 1.8 GHz and 2.6 GHz ranges by five years, which expire in 2025. The broadband association Brecco believes that this is only possible if the regulatory authority in turn imposes an effective service provider obligation on the top dogs in favour of “all suitable customers”. This would mean that Telekom & Co would have to rent part of its capacity to competitors that do not have their own infrastructure.
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Such a requirement is “the mildest effective regulatory tool” in the sense of “effective competition,” Bracco wrote in a statement available online at heise online on the network agency’s relevant consultation paper from May. This is the only way to eliminate the “existing imbalance” between the two sides, so that both fixed-line network operators can be active in the market with attractive bundle offers and the possibility of currently active network-independent mobile phone providers exiting the market can be prevented.” At the same time, the interests of consumers and not least business customers would be promoted in the best possible way.
The draft of the Presidential Chamber of the Regulatory Authority so far only follows the negotiation requirement that has existed since 2018 in favour of service providers and mobile phone discounters. However, this “has proven ineffective in practice,” Bracco stressed. The corresponding proposal ignores “the current market situation at both the wholesale and retail levels” and is based on a controversial report that does not allow any valid statements to be made about competition in mobile communications. If the Chamber sticks to its point of view, the frequency expansion would be illegal, in the opinion of the association.
Bundles with Fiber Optics and 5G at a cheaper price?
If the network agency does not bring itself under such an obligation, Braco would at least impose a ban on so-called resale restrictions: These artificially limit competition in favour of established operators and prevent network-independent providers from being able to sell wholesale service quotas to third parties. Such a move would enable fibre optic providers to market bundled products such as 5G mobile communications as well as super-fast internet without having their own mobile networks.
In order to increase the effectiveness of the mentioned negotiation requirement and to reach contractual agreements as quickly as possible, according to Brecco, the major network operators should be obliged to submit a binding contract offer to service providers within four weeks and to discounters within three months. The association believes that providing annual information on the status of negotiations with the three top dogs is worthwhile for those interested. With regard to the new fourth mobile network operator 1&1, Brecco considers it essential that its frequency requirements are also taken into account in practice. The planned cooperative, shared use of frequencies below 1 GHz “must be on a sufficient scale – and therefore cover more than the currently planned 2 × 5 MHz”.
Brecco receives support from, among others, the Federal Association of Consumer Organisations (vzbv). It is also calling in its presentation to the regulator For “pro-competitive measures” such as service provider liability. This is the only way to significantly boost the expansion of infrastructure in the market. Access barriers created by network operators for service providers must be reduced to protect consumer interests in terms of choice, prices and quality.
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