FRANKFURT: A German court found on Tuesday that the country’s federal network regulator committed serious negligence in the 2019 auction of 5G mobile radio frequencies, citing concerns about its independence.
The administrative court in Cologne said in a statement that the regulator’s mobile spectrum auctions had been “biased” and “unlawfully influenced” by Germany’s Ministry of Transport and Digital Infrastructure.
The court said frequencies would have to be allocated anew, but it was unclear whether the review would lead to changes to the operating rules of spectrum holders Deutsche Telekom, Telefonica and Vodafone.
Telecoms industry sources said the entire 6.55 billion euro ($7.32 billion) auction was unlikely to be called off.
The regulator said it “does not expect any negative effects on the further rapid expansion of mobile networks in Germany,” adding that it would assess the exact impact of the ruling.
Ahead of the 2019 spectrum sale, the regulator, called the Federal Network Agency, decided not to force future spectrum owners to sell some of their mobile data capacity to smaller mobile operators at competitive prices.
The court said the Ministry of Digital Infrastructure’s intervention in the case violated the regulator’s independence as provided for by European Union law.
A group of small telecommunications operators, including Ewe Tel, waged a years-long legal campaign against the decision.
“We’re not here to free ride, but so far we haven’t received any proposals from mobile network operators that would be able to meet the needs of our customers,” said Ewe-Tel managing director Norbert Westphal.
The court did not allow an appeal against the ruling but said those involved in the case could file a complaint against the ruling.
The Federal Network Agency is now Germany’s central authority for infrastructure under different leadership, overseeing areas such as the energy market and communications.
