Germany promises 5G spectrum incentives to build 4G now

Germany’s Transport Minister Andreas Scheuer said the government would offer some concessions to operators during the 5G spectrum auction, Reuters reported.
Mobile operators such as Deutsche Telekom, Vodafone and Telefonica Deutschland would have to pay for new 5G spectrum once it is allocated as part of the concession offered today. This, Scheuer said, would save the German telecom industry around 1 billion euros or $1.2 billion.

Deutsche Telekom, Vodafone and Telefonica Deutschland agreed to improve the coverage of their 4G networks to 99 percent by the end of 2020 as part of an agreement with the Germany government.

Germany will be supporting mobile operators during the 5G spectrum auction via certain concessions in order to encourage them to spend more towards enhancing the 4G coverage from the present levels.

Deutsche Telekom, Vodafone and Telefonica Deutschland will enhance 4G coverage over and above the 98 percent they committed to in the last spectrum licensing round.

“We are starting a unique network buildout offensive for Germany,” Andreas Scheuer said after signing a mobile pact with the industry.

The three telecoms operators have, for their part, said the cost of filling in the last gaps on the map is prohibitive and called on the government to adjust the subsidies on offer to make the investments affordable.

Deutsche Telekom, Vodafone and Telefonica, in a joint declaration, committed to ensuring that 99 percent of households have 4G network coverage in each of Germany’s 16 federal states during the course of 2021.

Deutsche Telekom, Vodafone and Telefonica will be building 1,000 4G masts in areas where there is currently no coverage and upgrading another 10,000 masts.