German Federal Network Agency Warned To Artificially Extend 5G Band Auction

Date:May 29, 2019



German Federal Network Director Jochen Homann warned participants to artificially extend the current 5G frequency auction. “We are in the 11th week, which is not satisfactory,” Homann said at the Buglas Summer Music Festival on May 28, 2019. He warned the parties not to "destroy the auction by simply extending the bidding process artificially."

But if the regulator now intervenes, it will be the end of the auction. Homann said that this will be waiting for the interested party. The auction result is currently 431 rounds, with 606.9 billion euros.

Telecommunications company owner Tim Höttges reiterated on May 9 that there was no final funding for the license in the network expansion. “Because of the funds currently on the table, Germany can build nearly 50,000 cells,” he said.

In response, Homann responded on Tuesday: “These companies know they must also meet the requirements, which is also the price during the bidding process.” He knows that these companies prefer to receive frequencies for free or in beauty contests. But bidders should prove that the frequency is worthwhile for them.

Höttges also criticized "100 MHz is reserved for companies outside the telecommunications industry." Höttges said that if the regional campus network has fewer frequency bands, the auction may have been around for a long time. It chooses a design that corresponds to the German way so that the state produces the highest possible income.

“The local frequency is suitable for combining physical conditions with sensors, which is a simple physical fact,” Homann said. He does not want to earn as much income as possible. On the other hand, German actions will also be investigated abroad. The industry is very interested in the campus network. A Bitkom survey produced different results because the company wanted to protect their business and trade secrets.

"We don't lead to the Gigabit world overnight, but in the next few years," Homann said. But no matter what time and space, this is impossible.

Overall, this 5G auction now lasts longer than ever: since the start of March 19, new bids have appeared again and again, and now the participants are in the 405th round. The 2010 auction took only 224 rounds and nearly 4.4 billion euros in auctions. At the 2015 auction, the auction had been auctioned for more than 178 rounds, but it was still close to 5.1 billion euros. But compared to the madness of the 2000 UMTS auction, there are relatively few 100 billion. Before the start of the 5G auction, external experts assumed revenues between 3 billion and 5 billion euros.