The German operators spend $ 6.5 billion for the 5G

Finally! Spectrum for 5G, the next generation of mobile telephony, have been granted in Germany. It took nearly three months of bidding, thirteen weeks, exactly

The German operators spend $ 6.5 billion for the 5G

Finally! Spectrum for 5G, the next generation of mobile telephony, have been granted in Germany. It took nearly three months of bidding, thirteen weeks, exactly - the hostilities began on 19 march - and 497 rounds for this crazy story is its epilogue. At the crossing, the telecom operators in germany have beaten a few records: auction duration, number of rounds... and price. It is two times higher than most estimates made in the beginning of the year. It is, however, slightly less than the amount disbursed by the Italians last year for the 5G, either 6,55 billion, against 5,49 for the Germans.

" READ ALSO - Europe in a difficult strategy for the deployment of the 5G

The federal State in German made him an excellent operation, at least in the short term. If the cost of acquisition of the license by flying, the operators have a little less resources to finance the deployment of their network. The three operators in Germany, Deutsche Telekom, Vodafone and Telefonica have warming up the checkbook to try to block access to their markets to a fourth thief, the MVNO Drillish, also competing to acquire spectrum. The latter has achieved its purpose, since it gets 50 MHz in the band of 3.6 GHz. While there remains recessed in the face of its competitors, Telefonica gets 70 MHz, while Deutsche Telekom and Vodafone 90 Mhz each. To spice up even a little the thing, the regulator German had to choose to make available 300 GHz for four players, who each wanted to 100 GHz. The account was not there! The 100 GHz remaining being reserved for German engineering. A different choice from that which has been done in France.

in Addition to-Rhine, The battle for the 5G hid another, since the German operators had also the opportunity to carry licenses in the band of 2.1 GHz band (some of the licenses that the French operators have already renewed). What they have done for 2.4 billion. Concretely, the frequencies 5G, strictly speaking, does not, therefore, have cost "only" $ 4.1 billion to the Germans.

In France, rates for the 5G should not fly away

What will it be in France? For the time being, the exact terms of attribution remain to be defined. The four operators (Bouygues Telecom, Iliad, Orange and SFR) concerned by the procedure, cross the fingers. Last year, they had obtained an agreement with the French State, the New Deal. Under the terms of the licensing of certain frequencies 2G/3G/4G had been extended and the amount of the royalties paid by operators to the State, frozen. In exchange for the four companies, the telecom committed to accelerate the deployment of 4G on the French territory. And it works. For the 5G, the French authorities should opt for a solution mid-way between the New Deal and the German method. Operators should go to the cashier, but without that the rates soar. The ball is in the camp of the government and of the Authority of the telecom. Charge them to set a reserve price below which the frequencies 5G will not be granted and determine the terms and conditions. In Germany, everything had finally been fat for as auctions go crazy. First, they have been the opportunity to see a fourth mobile operator to enter the lists, Drillish. Then, there was 300 Mhz available and each of the four wanted 100 Mhz. The account was not there and the Germans were forced to exit the portfolio in order not to be injured in the operation.

Date Of Update: 13 June 2019, 00:00
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