11.2.19

5G: German auctions brought to court

The 5G auctions are complicated in Germany, where the operator Telefónica has presented the case before the judges. An attempt that could delay the term.


5g.jpgNothing is going well in Germany. The operator Telefónica has filed a request for provisional relief with the Administrative Court of Cologne to stop the 5G auctions in Germany. These should be held in mid-March, but could be postponed. In question, the diffuse conditions imposed by the regulator. "Billions of investments can not be made on the basis of rules that are not clear," says Markus Haas, CEO of Telefónica Germany.

The operator, represented by O2, believes that the coverage requirements requested by the Bundesnetzagentur, the local regulator, are too ambitious. The agency is demanding that a rate of 100 Mbps be provided to 98% of households by 2022. It also wants coverage of all highways, roads and railways by 2024. To achieve these objectives, the regulator recommends different operators to collaborate , in particular through the practice of roaming. Only here, the operators consider that the legal contours of this practice are still very vague.

The Huawei case pending.
Telefónica is not alone in raising organizational problems in Germany. Vodafone and Deutsche Telekon also filed a complaint against the regulator in early January. "Frequency auctions are important milestones for Germany's digital future," says Vodafone. We need Germany to be the market leader in the 5G, but it only works if the general conditions are established correctly to also recover the huge investments necessary for the construction of the 5G network and not see the investments since they are later committed to losing their value "

To further complicate the situation, add the thorny problem of Huawei in 5G. On Wednesday, February 6, the German business newspaper Handelsblatt ensured that the government would not want to dispense with the Chinese equipment manufacturer. Chancellor Angela Merkel's cabinet director would even be determined to maintain her position. On the other hand, he would like to see a reinforcement of network security. A situation very similar to that of France, where an amendment could increase controls.

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