5G regulation and law in Germany

1. What is the state of 5G deployment in your country?

Vodafone GmbH was the first to launch 5G in 2019, followed later by Telekom Deutschland GmbH, Telefónica Germany GmbH & Co. OHG and Drillisch Netz AG.

2. Are telecoms companies monetising 5G investments - or are the services provided to consumers at similar prices to 4G? 

At first, 5G services were slightly higher than 4G, but now they are similarly priced.

3. Has 5G been launched for industrial purposes? For which sectors?

Yes, 5G was launched for industrial purposes several years ago. 5G is used in automotive, communications, defence, electronics, health, IT, media, pharmaceuticals and universities.

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies? Are such frequencies accessible to stadiums, airports and other special premises?

The German Federal Network Agency allocated frequencies in the 3.7 to 3.8 GHz and 26 GHz bands for local 5G purposes, with more than 140 companies now able to operate their own local networks. There is no obligation for nationwide spectrum holders to enter into a national roaming agreement with local 5G network operators. The frequencies are accessible to stadiums, airports and other special premises.

5. What public tenders have awarded spectrum licences? 

The 5G spectrum auction (2 GHz and 3.6 GHz) started on 19 March 2019 and ended on 12 June 2019 after 52 days and 497 rounds of bidding. The bidders paid more than EUR 6.5bn in total, and 420 MHz of spectrum was awarded.

5.1 What were the criteria for awarding each of the tenders?

The Federal Network Agency published the award criteria prior to the tender. According to the 2019 5G award conditions and auction rules:

  • The eligibility to participate was not restricted.
  • Each company could only be admitted once. This also applied to approvals within consortia.
  • Applicants were entitled to claim an individual minimum requirement for frequencies in accordance with their respective business models in the licence application (so-called essential minimum equipment). If an essential minimum requirement was claimed and the frequency requirement was undercut during the auction by an active bidder, that bidder would be excluded from the entire auction procedure. If an essential minimum configuration was claimed, it had to be described accordingly in the frequency usage plan.
  • In the notice of admission, the Federal Network Agency specified the respective bidding rights as well as the essential minimum equipment granted. This specification of the essential minimum equipment was binding for the auction.
  • Every applicant had to demonstrate reliability, expertise and performance to operate a public telecommunications network and describe how it would ensure efficient and interference-free frequency usage and how it would fulfil coverage obligations.

5.2 What are the conditions of the spectrum licence? 

The spectrum has been allocated for the period until 31 December 2040. The conditions of the spectrum licences contain several coverage obligations:

Coverage of population and minimum quantity of base stations (by the end of 2022):
  • Coverage of population
    • at least 98% of households in each federal state must have at least 100 Mbit/s (downlink per antenna sector),
  • Minimum quantity of base stations
    • 1,000 5G base stations and 
    • 500 base stations with at least 100 Mbit/s in "white spots" to be put into operation.
Coverage requirements for transport routes: Coverage of other mobile network operators will be taken into account. 

By the end of 2022:

  • all federal motorways (approximately 18,000km) with a minimum speed of 100 Mbit/s and a maximum speed of 10 milliseconds (ms) latency,
  • the federal roads (with specific connecting functions; approximately 5,350km) with at least 100 Mbit/s and at most 10 ms latency,
  • railways with more than 2,000 passengers per day (approximately 21,000km) with a minimum of 100 Mbit/s, and

By the end of 2024:

  • all other federal highways (approximately 32,700km) with a minimum speed of 100 Mbit/s and a maximum speed of 10 ms latency,
  • all national and state roads (approximately 80,000km) with at least 50 Mbit/s,
  • the seaports and the core inland waterway network (approximately 4,500km) with at least 50 Mbit/s and
  • all other railways (approximately 20,000km) with at least 50 Mbit/s.

The newcomer Drillisch Netz AG (1&1) is subject to different coverage conditions: 

  • at least 25% of households by the end of 2023, and
  • at least 50% of households by the end of 2025.

5.3 What is the price and how is it calculated?

These are the prices paid during the public 5G award process in 2019.

Drillisch Netz AG

2 GHz: 2 x 10 MHz
3,6 GHz: 50 MHz

EUR 334,997,000
EUR 735,190,000
total: EUR 1,070,187,000

Telefónica Germany
GmbH & Co. OHG

2 GHz: 2 x 10 MHz
3,6 GHz: 70 MHz

EUR 381,104,000
EUR 1,043,728,000
total: EUR 1,424,832,000

Telekom Deutschland GmbH

2 GHz: 2 x 20 MHz
3,6 GHz: 90 MHz

EUR 851,520,000
EUR 1,323,423,000
total: EUR 2,174,943,000

Vodafone GmbH

2 GHz: 2 x 20 MHz
3,6 GHz: 90 MHz

EUR 806,501,000
EUR 1,073,188,000
total: EUR 1,879,689,000

6. Is there a long-term spectrum plan or announcements for future tenders? 

Yes. The Federal Network Agency regularly publishes strategy and position papers for future tenders. At the end of 2022, the Federal Network Agency published a position paper on the provision of frequencies in the 800 MHz, 1,800 MHz and 2,600 MHz ranges for the expansion of digital infrastructures.

7. If 5G specific rules are drafted, what do they say?

Besides the award rules for nationwide 5G spectrum, published on 26 November 2018, and the rules for local 5G frequencies, no 5G specific rules have been drafted.

8. Are there any issues in the implementation of the 5G projects? Have there been any decisions regarding non-compliance with 5G concessions’ obligations?

No. Currently, the Federal Network Agency examines whether the 5G licence holders have fulfilled their coverage obligations.

9. What focused 5G network or spectrum sharing regulation exists? What are the latest developments in the thinking of the regulators about 5G shared infrastructure ownership or use?

None.

10. Are 5G network sharing or spectrum sharing agreements in place?

Telekom Deutschland GmbH, Vodafone GmbH and Telefónica Germany concluded a 4G network sharing agreement in the 800 MHz frequency range. The cooperation was  implemented exclusively in areas where one of the parties cannot offer mobile coverage, but the other party already has mobile coverage ("grey spots").

11. What are or will be the rules for granting competitors access to new 5G networks once they are deployed?

5G mobile network operators must negotiate among themselves when it comes to sharing existing nationwide networks.

The award rules for nationwide 5G spectrum do not contain a so-called service provider obligation. That means that 5G mobile network operators are not obliged to sign access agreements with service providers unless ordered to do so by the Federal Network Agency.

12. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

The Federal Network Agency published the catalogue of security requirements for operating telecommunications and data processing systems and for processing personal data. The catalogue was drafted alongside the Federal Office for Information Security (BSI) and the Federal Commissioner for Data Protection and Freedom of Information (BfDI).

The catalogue of security requirements applies to the operators of telecommunications networks and data processing systems and for the processing of personal data. It is the foundation for security, technical arrangements, and aims to increase networks and service security.

The catalogue specifically provides for:

  • critical components to be certified;
  • declarations of trustworthiness to be obtained from manufacturers and system suppliers;
  • product integrity to be ensured;
  • security monitoring to be introduced;
  • only trained and qualified personnel to be employed in security-related areas;
  • sufficient redundancy to be available; and
  • the avoidance of monocultures.

The catalogue contains additional security requirements for public telecommunications networks and services with a high level of risk. Furthermore, a list of critical functions will be created for high-risk infrastructure. These critical functions will be listed in a document jointly drafted by the BSI.

The list of critical functions will be continually updated and amended. Results of international analyses, for example from the European Union Agency for Cybersecurity (ENISA) or the Body of European Regulators for Electronic Communications (BEREC), were and are taken into account.

The following functions are considered critical:

  • subscriber management and cryptographic mechanisms (if there is a network component);
  • cross-network interfaces;
  • managed network services;
  • Network functions virtualisation management and network orchestration (MANO), as well as virtualisation;
  • management systems and other support systems;
  • transport and information-flow control;
  • lawful interception.

An English version is here.

Portrait ofJens Neitzel
Dr. Jens Neitzel
Partner
Munich