German Regulator Says No To Mandatory Roaming In 5G Licences

The German networks regulator has ruled out requiring domestic roaming under the new 5G licences to support an eventual newcomer on the mobile market, Handelsblatt reports. According to the terms of the auction seen by the paper, the Bundesnetzagentur also decided not to make nationwide coverage mandatory with the new frequencies, as the bands are not suitable, it said.

The spectrum auction is planned for early 2019 and will issue licences in the 2 GHz and 3.6 GHz bands. United Internet, owner of the largest MVNO in Germany, as well as industry groups had called for auction terms that would support a fourth operator, such as requiring low-cost access or mandatory roaming on the existing operators’ networks.

The regulator cited legal and economic reasons for not adding a national roaming requirement to the licences, saying the operators should not be overburdened economically given the costs of rolling out 5G networks. It will be up to the market to strike commercial agreements, said Jochen Homman, president of the Bundesnetzagentur.

In a statement, United Internet appeared to welcome the decision, saying it would “prefer commercial negotiations on national roaming”, especially as the ever-growing demand for data requires regular reviews of network access arrangements. The company welcomed the fact that the regulator at least appears committed to ensuring non-discriminatory network access, with a requirement for operators to negotiate such deals.

If commercial talks fail, the Bundesnetzagentur would act as “referee”, to ensure the ban on discriminatory practices is not violated, United Internet said. The company wants to make binding aribitration a requirement in such cases and called on the Bunsdesnetzgentur to include this in the final terms of the licences. “To ensure that these arbitral rulings are actually implemented, they must be accompanied by an obligation for both sides to contract,” the company said.

Coverage at 98% by end-2022

Furthermore, the regulator has ignored calls from politicians to require nationwide service coverage with the new frequencies. The licences will require speeds of at least 100 Mbps for 98 percent of the country by the end of 2022. This applies only to the three existing operators and not any newcomer, which would only need to cover 50 percent of households by 2022. The current operators must reach 50 Mbps for 97 percent of households by the end of 2020 under the existing licences.

Other coverage requirements for the new licences include 100 Mbps on all federal highways and major motorways by the end of 2022 and at least 50 Mbps for railways by the same date. In addition, the providers must build at least 500 base stations with at least 100 Mbps by the end of 2022 in so-called “white spots”, which lack sufficient coverage.

The regulator said it also set no minimum prices for the licences, in order to make the auction accessible to newcomers. Several regional spectrum permits will also be reserved for use by local players, companies or organisations interested in private networks.

The Bundesnetzagentur has already held an initial consultation with the market on the auction plan and is expected to finalise the terms at a meeting next month. The full plan should be released by November. – Telecom Paper