German States Support Frequency Auction

The German Chamber of States supports the auction of 700 MHz frequencies and the switch to DVB-T2, according to a report. Spectrum currently used by broadcasters will be assigned to mobile operators to improve the broadband supply in rural areas. In order to vacate the frequencies, terrestrial television under the DVB-T standard is due to be replaced with its more efficient successor DVB-T2. Terrestrial television viewers will have to get new DVB-T2-ready set-top boxes, which are not to be launched on the market before 2016. The switch is planned to start in 2017. In response to the project, the German Federal Council—which represents the 16 states at the federal level—is demanding that the government “ensure access to a sufficient frequency range for public authorities and organizations that perform security tasks.” The state representatives pointed out that mobile aeronautical service could cause interference with the targeted spectrum and should therefore be removed.

The development of mobile infrastructure is a critical objective in all telecom markets now. Emerging economies need to make more spectrum available to meet newly expanding demand for more and higher-speed service, while often in developed economies like that of Germany, where data consumption is already very high, more spectrum needs to be made available for mobile use. This is especially important in view of the ongoing expansion of LTE and its successor technologies. While building out infrastructure is ideal and is certainly the long-term goal, in the shorter term vacating frequencies may be necessary, and it can cause conflicts. In Germany, there is concern that making the 700 MHz spectrum available to MNOs could interfere with its use by security services.

One way to deal with the issue of spectrum overlap and dueling priorities is to phase out older technologies. For example, we reported a year ago that the Peruvian government was beginning a process to replace cordless landline phones, which use a frequency that was being given to a new entrant into the mobile market, Viettel. In Germany, one solution is to phase out an older digital TV standard and replace it with a new one that does not interfere with mobile networks. By making the process gradual (to be completed by 2017), the German authorities will be treating consumers better than the corresponding authorities in Peru, who announced that cordless phones would abruptly become unusable as soon as Viettel’s service launched.

The above item appeared in recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx