London: The GSMA today raised concerns that the proposed terms of the upcoming 5G spectrum award in Germany from the Federal Network Agency contain unreasonable and unrealistic license conditions that pose a substantial risk to the roll out of ultra-fast 5G networks across the country. While the GSMA has welcomed the German government's decision to release the entire 3.4 to 3.8 GHz band (C-Band), essential for the future development of 5G services globally, the conditions on the allocation of these vital frequencies jeopardise Germany's 5G deployment.
The auction rules contain massive advantages for newcomers that undermine fair competition by allowing them to meet significantly lower coverage requirements and to invoke a negotiation requirement for national roaming. This means, for example, that a new entrant could become a network operator by targeting a few locations in lucrative dense urban locations, relying on the infrastructure of existing network operators in sub-urban and rural areas. Not only does this further undercut the purported policy objectives on the already unrealistic coverage obligations, but it will reduce the incentive for operators to invest in underserved areas. As experience in other countries has shown, such an approach will drive roll-out activity primarily in cities.