The Federal Network Agency is reacting with this ordinance to the need for additional frequencies for the expansion of mobile networks. The fifth-generation network (hence 5G) is not only intended to enable higher bandwidths for users, but also new applications in industrial production. The Federal Network Agency promises an objective, transparent, and non-discriminatory auction procedure for the allocation of frequencies. It intends to set terms of contract and auction rules by the end of 2018 for this purpose.
Although the Federal Network Agency's communication mentions "early" auctioning of 5G frequencies, experts had actually expected it would be scheduled for 2018. A new competitor, in addition to Telekom, Vodafone, and Telefonica, could bring tension to the competition. Ralph Dommermuth, head of United Internet (1&1, gmx, web.de) has indicated that his company may build a fourth German mobile network . In addition to nationwide spectrum usage rights that are being auctioned, the Federal Network Agency also wants to provide frequencies for local and regional use. This could benefit regional network operators and startups.