5G regulation and law in Austria

Austria has made great strides  in 5G roll-out. The Austrian Telekom-Control-Kommission (TKK) auctioned frequencies in 2019, 2020 and 2024 to leading operators A1 Telekom, Hutchison Drei and Magenta Telekom, as well as to smaller, regional operators.

Based on information provided by the government and operators, over 90% of Austrian households have access to the 5G standard (SA+Non standalone - NSA) as of the end of 2024. There is no information on the extent to which SA 5G networks have been rolled out, but all the major operators, in particular Hutchison Drei, operate SA 5G networks.

There have been three significant 5G frequency auctions. To encourage 5G deployment in rural areas, discounts were offered to leading network operators A1 Telekom, Hutchison Drei and Magenta Telekom, as well as smaller, regional operators. The auctions were public and gave local network operators the opportunity to enter the high-speed mobile internet market, see also answer to Question 3.

Furthermore, the 5G spectrum was significantly cheaper than the 4G (LTE) frequencies auctioned earlier. In the 4G frequency auction, network operators had paid a combined EUR 2bn (USD 2.1bn) for the spectrum, and received back a total of EUR 1bn (USD 1.05bn) in subsidies. For the 5G frequencies, network operators paid just around EUR 400m (USD 420m).

In 2019, frequency packages in the 3410 MHz - 3800 MHz range were put up for auction, 39 frequency blocks of 10 MHz (total: 390 MHz) in 12 regions each were assigned. In 2020, frequency packages in the 700 MHz, 1.5 GHz and 2.1 GHz ranges were auctioned. Usage rights were allocated for a total of 27 frequency packages in the 700 MHz (6 blocks), 2100 MHz (12 blocks) and 1500 MHz (9 blocks) frequency ranges. In 2024, frequency packages in the 3600 Mhz and 26 GHz ranges were auctioned (7 blocks each).

All three auctions were public. While major network operators purchased the majority of frequencies, MASS Response, LIWEST, Salzburg AG and Holding Graz also acquired a significant amount of regional spectrum (see https://www.rtr.at/de/tk/5G-Auction-Outcome).

For more information, please see here: Procedures | RTR.

The barrier to participation in the tender was low. The auctions proceeded in the form of an open, simultaneous, ascending, multiple-round procedure. Those interested in frequency allocation could request the tender documents from the regulatory authority.

A prerequisite for the tender was payment of a reimbursement of costs of EUR 300. There were, however, additional requirements for mandatory interconnection of the networks as well as a minimum bid for each region and additional coverage requirements with minimum standards for the respective (rural) regions. To participate in the auction, an applicant had to secure the lowest minimum bid. There were also spectrum restrictions for the major network operators and a ban on price-fixing, which the authority strictly enforced.

A1 Telekom, Hutchison Drei and Magenta Telekom could bid for nationwide continuous frequency bands to cover densely populated regions. The three tenders each took place in a two-phase auction. Firstly, in the award phase, bids for the desired amount of MHz in the regions had to be submitted in several clock rounds. If spectrum remained unsold after the clock rounds, it could be allocated in another round of bidding. The winners of the allocation phase then bid in the allocation phase for the specific blocks they needed in the spectrum.

Usage rights were granted for a period of approximately 20 years and grouped in 12 regions. The regional denomination is intended to give local network operators the opportunity to enter the high-speed mobile internet market. Frequencies were allocated in a technology-neutral way, offering flexibility to adapt usage conditions to future 5G standards.

Each network operator is obliged to operate a certain number of sites with the frequency spectrum allocated to it in this procedure and to fulfil the coverage obligations associated with the allocation. The coverage obligations serve to ensure efficient use of the frequencies. Penalties apply in the event of non-fulfilment.

The pricing was calculated on the minimum bidding amounts for the respective regions and was adjusted during the course of the multi-phase bidding process. The bidders have paid the following for the frequencies:

• In the 2019 pioneer band auction, the bidders paid a total of EUR 187,689,576 (USD 197m) (A1 Telekom: EUR 64,345,972 (USD 67.57m); Hutchison Drei: EUR 51,910,054 (USD 54.5m); Magenta Telekom: EUR 56,903,001 (USD 67.6m); MASS Response: EUR 1,845,000 (USD 1.94m); LIWEST: EUR 5,328,000  (USD 5.6m); Salzburg AG: EUR 4,359,449 (USD 5.48m); Holding Graz: EUR 2,998,100 (USD 3.15m)).
• In the 2020 multi band auction, the bidders paid a total of EUR 201,876,964 (A1 Telekom: EUR 65,597,430 (USD 68.7m), Hutchison Drei: 49,559,294 (USD 51.9m), Magenta Telekom: EUR 86,720,240 (USD 90.7m)).
• In the 2024 auction, the bidders paid a total of EUR 24,693,600 (A1 Telekom: EUR 7,192,000 (USD 7.55m); Hutchison 3: 6,947,000 (USD 7.3m); Magenta Telekom: 10,554,600 (USD 11.8m)).

For more information, please see here: Procedures | RTR.

So far, there have not been any (publicly disclosed) issues with 5G implementation, or any decisions regarding non-compliance with 5G concession obligations. This may be due to the fact that the regulator works together closely with the providers and initiates proceedings only in exceptional, severe cases.

The regulator has completed all 5G auctions, with the major pioneer-band auction in 2019 and the multi-band auction in 2020. The remaining frequencies were auctioned in 2024.

Regarding the tenders, specific rules (apart from general spectrum and radio emissions regulations) were set by the regulatory authority (see the answers above).

Specific rules on 5G are set out in the Austrian Telecommunications Act 2021 and the Telecom Network Security Regulation issued by the Austrian Regulatory Authority RTR-GmbH. These include requirements in particular for collaborations on active network components and cybersecurity.

No network sharing or spectrum sharing agreements have been publicly disclosed, but according to notices published by the regulatory authority, some were concluded at least between the major providers Hutchison Drei and Magenta Telekom. It can be assumed that A1 Telekom and the regional operators have also concluded such agreements.

The 5G rules on network or spectrum sharing are set out in the Austrian Telecommunications Act 2021.

The regulator confirmed in a 2020 white paper that it wanted to support any type of 5G infrastructure sharing activity (see https://www.rtr.at/TKP/aktuelles/publikationen/publikationen/5G_whitepaper.de.html).

The regulatory authority may impose obligations on relevant companies wishing to share passive infrastructure or forging local roaming access agreements, as long as these are directly necessary for providing services at the local level, and as long as no viable and comparable alternative means of access to end-users is made available to any undertaking on fair and reasonable terms.

The regulatory authority may only impose such obligations where this possibility has been explicitly provided for in the spectrum assignment and where this is justified by the existence of insurmountable economic or physical barriers to the market-driven roll-out of infrastructure in the relevant area, resulting in end-users receiving poor access to networks or services (§ 26 TKG 2021).

In 2020, the regulator issued the Telecom Network Security Regulation, which contains general provisions on network security, including 5G network security requirements, but no specific regulations relating to China.

See: RIS - Telekom-Netzsicherheitsverordnung 2020 - Bundesrecht konsolidiert, Fassung vom 09.01.2023 (bka.gv.at)

It appears that network operators are cautious about using Chinese network equipment. According to a survey by a major newspaper, one of the major network operators (Magenta Telekom) uses equipment from Huawei, as does smaller operator Liwest. Hutchison Drei uses equipment from ZTE.

See: 5G-Ausbau und Huawei: So halten es Österreichs sieben Netzbetreiber - Telekom - derStandard.de › Web

According to the responsible ministry, the first 6G test regions in Austria should be in place by 2030 at the latest.