German 5G auction design could increase spectrum costs: D.Telekom

BONN, Germany (Reuters) – The 5G auction in Germany is creating a scarcity of spectrum that could drive up costs and leave operators short of money to build next-generation networks. said Thursday Tim Hoettges, managing director of Deutsche Telekom.

"An artificial shortage of public resources is being created, which could drive up the price," said Hoettges at the company's annual general meeting in Bonn, adding: "In the end, there is no reason for it. There is no money for construction. "

German regulators have cut a frequency band suitable for use in high-tech "connected" factories and will badign it regionally to industrial companies at the end of this year.

As part of an auction that began last week, four operators compete for a total of 420 MHz of spectrum in the 2 GHz and 3.6 GHz bands. The combined offers reached one billion euros Wednesday night.

Industry badysts expect that the amount raised in the open-ended auction – in which Vodafone, Telefonica Deutschland and the new entrant 1 & 1 Drillisch will participate – will reach 3 billion euros. euros or more.

A court rejected the protests filed by operators to end the auction. Litigation is still ongoing, which could put the auction results back to the test retroactively, depending on the industry.

Hoettges reiterated its previous complaints about delays in obtaining local authorizations for the construction of new telecommunication masts in Germany, which may take two years or more, and urged the authorities to lighten the rules to encourage investments.

He also called for more infrastructure sharing, in which competitors can install antennas on the same towers, to reduce the cost of building 5G networks.

"We build the mast and others can use it to mount their antennas. Especially in rural areas, where coverage gaps are still important, "he said.