5G is coming. But while the previous technologies were often only available for a hefty surcharge, the new standard is often on top of that. Behind this is a new strategy of the mobile phone companies – and the pressure of the discounters.
Surf faster, less busy networks and completely new usage scenarios: The new 5G mobile communications standard offers consumers and industry a whole host of advantages. One of the most revolutionary innovations from the consumer’s point of view: You often do not have to pay more for use than before.
That was not always so. When the revolution of the mobile communications market was promised for the last time, first with UMTS and then with its successor LTE, it was often an expensive proposition for customers. The providers usually paid for access to the new network through additional fees; even in premium tariffs, activation often cost a surcharge. It’s different with 5G. And thus shows well how the market has changed in recent years.
No price jump for 5G
“Most of the network operator’s contract tariffs include 5G at the same price,” the comparison portal Verivox confirmed to an inquiry from stern. And not, as was the case in the past, only with newly concluded contracts. If you have one of the higher-quality runtime tariffs with Vodafone, Telekom or Telefónica, the option is usually simply activated free of charge. And – assuming a corresponding smartphone with 5G support and network coverage on site – can simply go online using the new standard.
Of course, this strategy doesn’t come out of nowhere. “With 5G as a free component in our current tariffs, we set ourselves apart qualitatively from cheaper offers on the market,” explained a Vodafone spokesman at the request of the star. In other words: The new Internet standard will become part of the premium package with which network operators are trying to differentiate themselves from the cheaper competition from discount retailers.
The triumphant advance of discounters is changing the market
They had shaken up the German mobile communications market tremendously in recent years. If the German tariffs were long considered overpriced, this picture has changed tremendously. After Telefónica had to grant resellers access to the LTE network as part of the takeover of E-Plus, prices tumbled. The effect could no longer be ignored for the premium providers either. Vodafone and Telekom managed to maintain the level of the monthly fees, but they increased the data volume considerably. Since 2019, the data volume at Telekom has tripled in comparable tariffs, Verivox calculated in a study.
But that will not be enough as a lure for customers forever. The data consumption of users is increasing, but not nearly as fast as what is offered in modern tariffs. Tariffs already offer considerably more data volume than is actually used. According to Verivox, the average German user used 3 GB of data volume per month last year. The average inclusive volume is 23 GB – almost eight times as high. In addition, there are regulations that exclude certain content such as music or series streaming from the volume used. The included volume, which is much too generous, is therefore even less burdened.
Premium-Feature 5G
5G is the perfect opportunity to upgrade your own tariff and make it look more valuable than the cheaper tariffs. “Currently, 5G tariffs are limited to network operators or the original network operator tariffs from service providers,” Verivox confirms. “With prepaid tariffs, 5G sometimes costs a surcharge (around 3 euros for four weeks), in some small tariffs only LTE is included, not 5G.
If the customers have their way, 5G could even cost a little more, a study by the industry association Bitkom found. Those surveyed would be willing to spend an average of 11 euros more, only 27 would definitely not want to pay more for the new standard.
The network operators could have another motivation to offer the new technology at no extra charge. “5G is designed to allow a significantly larger number of devices to access the same radio cell at the same time with better performance,” explains Hakan Ekmen, whose agency umlaut regularly tests international mobile networks. “The providers therefore have an interest in bringing as many users as possible from the LTE networks to the 5G network – ultimately also in order to be able to use the limited frequencies much more efficiently.” This also has a noticeable effect for customers: they have to deal less with networks that are overloaded by many users who are logged in at the same time.
Not a mass product yet
So far, customers have only made limited use of the offer. However, this is also due to the fact that the network is still under construction. “Mobile radio stations that are equipped with 5G technology are responsible for around 20 percent of the data traffic in our network,” explains Hannes Ametsreiter, CEO of Vodafone Germany. For technical reasons, however, it could not be said more precisely: “Since some cellular antennas transmit data both via 5G and LTE, a clear distinction is not possible because there is overlap.” Telekom also confirms that usage is still limited. “The 5G share of the traffic is still low, because it is a new technology and so far there is a low penetration of 5G-capable devices,” said a spokesman for the group on request.
That should change quickly. For almost two years now, more and more smartphones that support 5G have been coming onto the market. “Around 60 percent of all smartphones that customers buy from Vodafone are 5G smartphones,” confirms Ametsreiter. These are not just premium devices such as the iPhone 12 (tested here) or the Galaxy S21 (also tested by us). Even in the 200 euro class, there are already devices that support 5G, if you are looking for it. Examples are the Motorola Moto G 5G or the Samsung Galaxy A42 5G.
Michael Gundall from the consumer center believes that anyone who cannot yet participate in 5G – be it due to a lack of support for the technology in the tariff or the smartphone or because the network has not yet been expanded – does not have to be angry. “At the moment 5G is still nice to have and not a must,” he says. “The new network already offers advantages such as a potentially faster connection, but the further developments in 5G are not yet over,” explains Gundall. “Until then, the LTE standard will remain with us for a while.”
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