The network operators Telekom, Vodafone and O2 dominate the majority of the mobile communications market in Germany. The remaining competition tends to lead a niche existence. Politicians now want to help the little ones.
In the dispute with the large German cell phone network operators, small competitors have received some tailwind from leading politicians from federal politics and from the federal states. The Advisory Board of the Federal Network Agency unanimously approved a position paper dealing with the allocation of mobile phone frequencies due in 2024. The letter states that “fair and non-discriminatory access” for competitors must be secured. It’s about companies that don’t have their own network, but get capacity from network operators and use it to sell mobile phone contracts. Such a company is Freenet. The rule will probably be decided by the Federal Network Agency in 2024.
However, the sentence leaves room for interpretation. A provision is already worded in a similar way. According to Freenet and other companies, this provision, which is about a “negotiation requirement” without an obligation to conclude a contract, is too weak. The network operators Telekom, Vodafone and O2, on the other hand, consider them to be sufficient – according to their description, this niche market works very well, while Freenet is convinced of the opposite.
The fact that this sentence is fixed in the current debate as the position of leading politicians from the Bundestag and from the federal states is interpreted as a hint in favor of “service provider obligation” – such a duty would be a tightening of the said negotiation requirement. Then Freenet & Co could get 5G capacities more easily.
Left-wing member of the Bundestag Anke Domscheit-Berg said that the decision paved the way for ensuring functioning competition in the forthcoming award of frequencies and better protecting the interests of consumers. “Everyone must be able to get affordable access to high-speed networks,” said the digital politician.
to clarify open points
From the point of view of the SPD politician Johannes Schätzl, however, there are still open points to be clarified before taking such a step. He submitted a catalog of questions to the network agency. The answers should provide information as to whether the market is actually failing or whether it is working. Only if there is insufficient competition or is endangered is the regulator likely to intervene and impose the obligation. At the same time, investments must be secured, according to the law.
A spokesman for the Bonn regulatory authority said after the advisory board meeting that it was the task of the Federal Network Agency to examine a service provider obligation in the frequency allocation procedure. “A decision hasn’t been made yet.”
Telefónica Germany boss Markus Haas reacted coldly to the advisory board decision. A lot of money was spent on frequency spectrum – “in the confidence that this spectrum does not necessarily have to be shared at dumping prices,” he said on Monday. Should there be a service provider obligation, it would be “a devastating signal for future investments”. “The gigabit plans of the federal government would be thrown back by many years.” The Federal Association of Broadband Communication (Breko), which speaks for alternative broadband providers, was pleased and spoke of an important signal for more competition in the mobile communications market.
Source: Stern
