Enhancing Mobile Network Coverage: Germany's Need for Improved Connectivity

In the digital age, Germany continues to grapple with inconsistent mobile network coverage in various regions. Many areas, particularly rural ones and along highways, still report inadequate service. The Federal Network Agency is taking action to address these concerns.

Today, the regulatory body's advisory board, comprising political representatives, convenes to discuss a set of guidelines aimed at accelerating the expansion of mobile networks. A decision on these regulations is expected soon, potentially as early as Monday. The new rules are anticipated to impose stricter requirements on network operators while also forgoing the lucrative auction of frequency bands.

The historical context of mobile network development in Germany reveals a series of challenges. The initial frequency auction in 2000 saw telecommunications companies paying around EUR50 billion, a figure that later hindered their ability to invest in infrastructure. Consequently, the expansion of network coverage progressed slowly, with many areas experiencing poor connections. Although the Federal Network Agency established expansion mandates, compliance was often lacking.

Since 2020, however, there has been a gradual improvement in the situation, with companies like O2 increasing their investments to enhance their networks. Currently, the leading provider, Deutsche Telekom, claims to cover 99.6% of households with 4G and over 98% with 5G technology. In terms of geographical coverage, as of January, Telekom reaches 92% of Germany with 4G and 84.4% with 5G, while competitors O2 and Vodafone have lower coverage levels.

According to Verivox, a comparison portal, Germany ranks in the middle of European countries regarding mobile connectivity. Despite this average standing, mobile tariffs in Germany are reported to be significantly higher than the EU average.

In response to these issues, the Federal Network Agency is tightening the regulations. Previous requirements focused on household coverage, but the new guidelines will emphasize geographical coverage. By 2030, a minimum download speed of 50 megabits per second must be available across 99.5% of Germany's land area. Currently, only about 2% of the country lacks access to 50 megabits from all three major providers. The final fractions of coverage tend to be the most challenging to achieve, benefitting outdoor enthusiasts and individuals in remote locations.

Rural residents can also expect improvements, as the agency plans to mandate that 99% of households in sparsely populated areas achieve download speeds of 100 megabits per second by 2029, a significant benefit considering that nearly one-fifth of the population resides in these areas.

For travelers, mobile connectivity on federal highways is set to improve. By the end of the decade, minimum service standards will also apply to secondary roads, ensuring decent connectivity for motorists throughout Germany. The goal is that by 2030, drivers will maintain a reliable mobile connection on all roads.

While there are existing requirements for mobile coverage on federal highways, the current regulations allow for gaps if different providers cover adjacent sections. The new rules will require that each major operator--Telekom, O2, and Vodafone--provides continuous coverage along these routes.

In a notable shift, the government will avoid the usual multi-billion euro revenues from frequency auctions. Instead, it will extend usage rights for existing frequencies by five years, a move only seen previously in 2006. This decision significantly reduces expected government income, which was EUR6.5 billion in 2019 from twenty-year usage rights, to approximately EUR600 million during the extension period.

For new entrants like 1&1, which secured frequencies in 2019 and aimed to participate in future auctions, this extension poses challenges. However, measures will be implemented to mitigate the impact of this disadvantage.

Discussions have also arisen concerning how to handle telecommunications providers without their own networks. Smaller competitors, such as Freenet, are advocating for access to major networks, while established operators prefer to retain control over their infrastructure. The Federal Network Agency has proposed a compromise, allowing for negotiations over network sharing, although no obligation to grant access is enforced.

Political reactions to the proposed expansion regulations have been largely positive. Some members of parliament describe this initiative as a significant advancement for Germany's digital infrastructure, emphasizing the importance of ensuring robust mobile connectivity for both urban and rural populations.