In Short:
A German court criticized the federal network regulator for its handling of a 2019 auction of 5G mobile frequencies, saying it was biased and influenced by the government. The Cologne court ruled that the auction must be reviewed, but it’s unclear if it will change the current rules for major operators like Deutsche Telekom, Telefonica, and Vodafone. The regulator, now led by new officials, stated that the ruling wouldn’t negatively impact mobile network expansion. Smaller carriers had fought for fairer access to mobile data, but have yet to receive satisfactory offers from the larger operators.
Serious Missteps in Germany’s 5G Spectrum Auction
FRANKFURT: A recent ruling from a German court has shed light on significant errors made by the federal network regulator during the crucial 2019 auction of 5G mobile radio frequencies. This decision raises questions about the integrity and independence of the regulatory process.
Concerns Over Fairness
The administrative court located in Cologne has declared that the Bundesnetzagentur, Germany’s federal network regulator, conducted a mobile spectrum auction that was “biased” and “unlawfully influenced” by the Ministry of Transport and Digital Infrastructure.
What Happens Next?
According to the court’s statement, the spectrum in question will need to be reallocated, although it’s still unclear if this review will bring about any changes to the operating rules for major spectrum owners like Deutsche Telekom, Telefonica, and Vodafone. However, industry insiders are skeptical that the entire €6.55 billion (approximately $7.32 billion) auction will be annulled.
Regulator’s Response
In light of the ruling, the regulator has expressed that it does not foresee any detrimental impacts on the swift expansion of mobile networks throughout Germany. They are currently assessing the full implications of the court’s decision.
Backstory: A Long Legal Battle
During the lead-up to the 2019 auction, the Bundesnetzagentur decided against requiring future spectrum owners to sell a portion of their data capacity at competitive prices to smaller mobile operators. This decision—that many deemed unfair—was reportedly influenced by the digital infrastructure ministry, a move that the court deemed a violation of the regulator’s independence, a principle firmly established in EU law.
Smaller carriers like Ewe Tel have been engaged in a battle against this decision for years. Their managing director, Norbert Westfal, expressed frustration: “We are not here to freeload. But so far we have not received any offers from the mobile network operators that would allow us to satisfy the needs of our customers.”
No Appeal, But Options Remain
While the court’s verdict is final and does not allow for direct appeal, those involved in the case can still submit a complaint about this ruling.
Moving Forward
With new leadership now at the helm of the Bundesnetzagentur, which oversees infrastructure, energy, and telecommunications in Germany, all eyes will be on how this situation unfolds and whether it will lead to tangible changes in the competitive landscape of the telecommunications sector.
