Berlin The vast majority of fiber optic network operators in Germany also want to offer potential customers mobile communications based on the latest 5G standard. But creating such a bundle doesn’t seem to be easy.
Norbert Westfal, chairman of the Federal Broadband Communications Association (Breko) and head of the Oldenburg telecommunications company EWEtel, accused the “mobile network operators” of Deutsche Telekom, Vodafone and Telefónica of “foreclosure practices”.
The fact that they do not lease the network to fiber optic providers on the same terms as their own sales offices not only impairs the range and quality of mobile communications but also “has a significant negative impact on companies expanding fiber optic networks in Germany”, Westfal told Handelsblatt.
His association relies on a commissioned study. A survey was also conducted of 132 fiber optic network operators, all of whom are members of Breko. The vast majority believe that mobile services such as telephone and internet are mandatory for their customers “in order to compete on an equal footing and to be able to refinance their investment,” said the study, which provides to Handelsblatt.
After all, network operators Deutsche Telekom, Vodafone and Telefónica will offer a combination of fixed-line and mobile products. The Federal Network Agency should therefore oblige network operators to open up their networks to third parties and rent them out under the same conditions as they sell themselves. Only in this way, competition is possible. Just as importantly, a fourth supplier could permanently ensure more competition in the mobile phone market. A common customer for the study is the new mobile network operator 1&1, which is currently trying to set up the network.
Firms demand tough conditions in next frequency auction
The demand comes as the Federal Network Agency is negotiating with industry and politicians the terms for reallocating mobile frequencies due to expire in 2025. In the previous auction, the agency did not require the winning bidder to make the network available to other service providers. This has been the case before, which means that 1&1 and Freenet in particular are well placed to be alternative providers of network operators.
>> Read here: 1&1’s 5G expansion backlog is bigger than known
The network management pointed out that each enterprise can negotiate with the network operator on network access matters, and the disputes will be resolved by the network operator through negotiation. However, so far, there are no pending disputes with the agency. On the other hand, according to the Breko report, more than half of the fiber network operators surveyed for the report are interested in purchasing mobile services. However, talks to date have been “marked negatively” by the companies.
Incumbent mobile network operators are “hardly willing to make an adequate offer”. Instead, they usually refer only to LTE technology (4G). “As a result, competitors without their own mobile networks are generally unable to offer their own 5G-based end-customer services,” the expert concluded.
The vast majority of fiber optic network operators in Germany also want to offer potential customers mobile communications based on the latest 5G standard.
(Photo: dpa)
“The offer is made underground,” Ralph Dommermuth, head of United Internet and its well-known subsidiary 1&1, reported on talks with mobile network operators in the Frankfurter Allgemeine Zeitung earlier this week. The company bought the frequencies at auction in 2019 and has been trying to build a nationwide network since then. It also has access to the Telefónica network (domestic roaming) from September, and although its own network is rudimentary, it still offers nationwide service. But 1&1 is only allowed to use the LTE network, not the 5G network.
Dommermuth has therefore applied to the Federal Network Agency for nationwide roaming on the 5G networks of all three mobile phone providers. “Since recent amendments to the telecoms law, it has been able to order roaming to promote nationwide competition and 5G coverage,” Dommermuth defended the move in Handelsblatt. Dommermuth requested that authorities should use this option “in the interest of their customers”. The network agency does not want to provide any information about the ongoing process.
1&1 is currently experiencing major problems meeting its obligations as the operator of the new network. By the end of the year, the company should have installed 1,000 base stations. There are 20 of them recently. Dommermuth believes Vodafone subsidiary Vantage Towers is responsible. You did not abide by the contract.
Netzagentur wants to assess the quality of the competition
United Internet bosses have launched an attack on the federal cartel office, which has filed a lawsuit. At the same time, he complained that other network operators wanted to drive him out of the market again, pointing out that he had not installed enough masts.
The Network Agency intends to assess the quality of competition in the market in the coming months. Depending on the results, it will be decided whether network operators will be subject to conditions, such as an obligation to open their networks to third parties. The fact that there is a fourth network operator in the form of 1&1 is a “yes”. There are also “dozens of cellphone brands” offering cellphone service.
>> Read here: How Telekom is leveraging its market power in fiber expansion
However, Breko’s research points out that competition is only “the appearance.” Discounters are simply sales partners between end customers and network operators. It is more important to have a fourth network operator to guarantee competition, allow the use of competing 5G networks during the construction process, and be obliged to open the network to third parties.
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