German 5G spectrum auction concludes

The auction for 2 GHz and 3.6 GHz mobile spectrum has come to an end in Mainz after 52 days and 497 rounds of bidding.

"The end of the auction fires the starting gun for 5G in Germany. I'm pleased that four companies have acquired spectrum and will compete to expand the network for 5G. The spectrum is to be used not just for the new mobile communication standard, 5G, but also to improve mobile coverage in Germany. It is now up to the companies to put the spectrum to use quickly and to fulfil their coverage obligations," "said Jochen Homann, Bundesnetzagentur President.

A total of 420 MHz was auctioned off. The companies Drillisch Netz AG, Telefónica Deutschland GmbH & Co. OHG, Telekom Deutschland GmbH and Vodafone GmbH acquired the following spectrum:

Company Amount of spectrum Award price
Drillisch Netz AG 2 GHz: 2 x 10 MHz
3,6 GHz: 50 MHz
total: €1,070,187,000
Telefónica Germany
GmbH & Co. OHG
2 GHz: 2 x 10 MHz
3,6 GHz: 70 MHz
total: €1,424,832,000
Telekom Deutschland GmbH 2 GHz: 2 x 20 MHz
3,6 GHz: 90 MHz
total: €2,174,943,000
Vodafone GmbH 2 GHz: 2 x 20 MHz
3,6 GHz: 90 MHz
total: €1,879,689,000
Total 420 MHz €6,549,651,000

The spectrum was auctioned because the companies wanted to acquire more than was available. The sum of over €6.5bn taken in the auction reflects the value of the spectrum.

Newcomer Drillisch bid successfully, showing that the auction design is suitable for promoting competition.

Conditions are attached to the spectrum to accelerate the expansion of the network in Germany, benefiting both consumers and the economy as a whole. The new 5G mobile communication standard is intended to improve mobile broadband coverage as well as encouraging the development of innovative applications and optimisation of production processes in industry (Industry 4.0). "Businesses are reliant on powerful 5G networks to interconnect machines and equipment," stressed Homann.