German authorities have consistently set clear requirements for mobile network expansion by telecommunications companies in Germany, but to date, these requirements have not resulted in any penalties. A spokesperson for the Federal Network Agency (Bundesnetzagentur) confirmed findings by the Handelsblatt newspaper that no fines have been issued in administrative proceedings related to these violations.
In recent years, the Federal Network Agency has frequently linked the auctioning of frequencies with specific targets for network development. This year, the agency opted to extend existing frequencies, primarily coupled with stricter expansion obligations, potentially avoiding costly frequency auctions for mobile operators. According to Federal Network Agency President Klaus Müller, the decision prioritizes improved mobile network coverage and increased competition rather than generating state revenue.
However, critics are voicing concerns about the lack of concrete sanctions, arguing it poses a risk to network expansion efforts within Germany. Sven Knapp, head of the Federal Broadband Communication Association’s (Breko) Berlin office, stated that the Federal Network Agency’s reluctance to impose fines on mobile network operators is “unfathomable and not justifiable on a factual basis”. He further suggested that the network provision requirements for network operators are being treated as mere declarations.
The Bundesrat (Federal Council) is scheduled to vote on July 11th regarding amendments to the Telecommunications Act, which aims to further accelerate network expansion across Germany.
