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Bonn (dpa) - Two years after a multi-billion dollar mobile radio auction, Germany's large telecommunications companies are campaigning for a rule change in order to enable better network expansion.

Instead of auctioning spectrum - i.e. radio frequencies for the transmission of data and telephony - and thereby withdrawing money from companies, the current leasing of 800 megahertz frequencies should simply be extended, demand Telefónica, Deutsche Telekom and Vodafone.

Then only fees would be due and the network operators would have to pay less money.

"That would give us planning security and make investments easier for us," says Telefónica Germany boss Markus Haas.

The reason for the demand is the reform of the Telecommunications Act - in the opinion of the companies, this should include the possibility of extending frequency usage.

A vote on this in the Bundestag's economic committee is planned for next Wednesday.

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There is a rejection of the claim among experts.

Foregoing auctions would not have any definite advantages for consumers, says Torsten Gerpott from the University of Duisburg-Essen.

"Because there is no guarantee at all that the operators will actually invest the money they have saved in expanding their network at home - the money may well end up in a completely different part of their global business."

The question of whether auctions make sense is practically as old as this century: At the first major mobile phone auction in 2000, six companies put the equivalent of around 50 billion euros on the table.

In retrospect, that turned out to be way too much.

Two of the companies quickly disappeared from the scene and the debt burden of the others was so heavy that too little money was spent on a fast, comprehensive network expansion - at that time still in the 3G standard (UMTS).

At later auctions, the network operators paid significantly less, but the debate flared up again and again.

In 2019, Deutsche Telekom, Vodafone and Telefónica acquired spectrum for their 5G networks for a total of 5.5 billion euros - these billions of costs were also unnecessary in their view.

Following the motto “after the auction is before the auction”, the debate is now picking up speed again.

Telefónica manager Markus Haas points out that auctions always bring with them uncertainty.

It is economically questionable to invest now in locations where you may no longer be able to use certain frequencies from 2026 if you do not get the necessary spectrum at the auction, says Haas.

Auctions are a brake on investments.

"We could expand even faster, especially in rural areas, if we soon had planning security with the 800 megahertz frequencies."

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Haas referred to a legal opinion by a professor from Bonn, according to which the federal government could violate a European code and thus EU law with the currently planned reform - because it would not be possible to waive the auction.

In other EU countries, frequencies would be awarded without an auction.

Telekom is also calling for "extension solutions".

Vodafone emphasizes that every euro can only be spent once: "For a piece of paper - or high-performance networks that pave Germany's way into a digital future."

The extension request of the three long-established network operators still has a catch: It's called 1 & 1 Drillisch.

The subsidiary of United Internet is currently preparing to become the fourth German network operator and paid around 1.1 billion euros for its first own spectrum in 2019 - in significantly higher bands that are suitable for cities, but for area coverage the country are suboptimal.

Drillisch therefore wants to add more at the next auction and stock up on a wider range.

If the auction were called off, the newcomer would look into the tube.

Although Drillisch would still have access to lower frequency bands for area coverage via Telefónica, it is dependent on the competitor.

The head shaking is correspondingly violent at 1 & 1 Drillisch regarding the extension request.

One is “absolutely dependent on gaining access to the important area frequencies within the framework of the upcoming frequency assignments”, Drillisch announced.

A mere extension of frequency usage rights would be “an unjustifiable, obviously illegal privilege for Deutsche Telekom, Vodafone and Telefónica and, at the same time, a considerable disadvantage for 1 & 1 Drillisch that cannot be made up”.

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The Federal Network Agency, which is responsible for frequency allocation, also reacts coolly to the request of the three large network operators.

"Auctions are and will remain the best way to allocate scarce frequencies in a competitive manner and to open up opportunities for potential newcomers," says Jochen Homann, head of the authorities.

© dpa-infocom, dpa: 210409-99-135341 / 2