Germany may face EC legal action over auction
Published: 14 October, 2009
READ MORE: Germany | Regulation | UMTS
Germany has given the green light to next year's planned auction of digital dividend spectrum, which is expected to raise €5bn, despite complaints from the European Union and the country's smaller operators. This defiant stand could prompt legal action by the European Commission, however.
Germany's Federal Network Agency (FNA) has agreed that the auction can take place in the first half of 2010, despite a letter from European Commissioner Viviane Reding expressing concern that the sale would favor larger operators like T-Mobile.
Smaller cellcos E-Plus and O2 had called on the regulator to ensure fair access to the frequencies for all operators by limiting the bidding rights for the larger players. Only three licenses will be auctioned, meaning one of the four cellcos will lose out - and analysts believe the unlucky company might well exit the market altogether because it will be disadvantaged in spectrum terms, especially for rural coverage and 4G. Germany has already conducted several LTE trials in the digital dividend band.
The EC's telecoms spokesman Martin Selmayr said that the Commission would now consider legal action, since it is "deeply concerned" about the German decision to ignore its advice on how to ensure fair competition. If the Commission finds EU laws are flouted by the German scheme, it "will not shy away from enforcing the EU's competition and single market rules in this important context", Selmayr told Dow Jones newswires.
Under EU law regulators have to allocate spectrum in an "objective and transparent way" that does not stifle competition or benefit incumbents. The German regulator argues this matter is "outside the EC's competence".
More GERMANY News
More REGULATOR News
More LTE News
COMMENTS
Carrier Broadband Performance: Africa & Middle East
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. This...
Voice over LTE: Market Analysis and Forecasts
VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics and promises to improve voice quality, device...
Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?
Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...
