The German government has formally announced its decision to auction off two blocks of 30 MHz frequencies in the 700 MHz band for mobile broadband. Mobile broadband using this spectrum will be phased in starting from 2017. The auction will take place at the same time as the auction for 900 MHz and 1800 MHz frequencies whose permits expire at the end of 2016. The blocks will be split into lots, each lot consisting of two paired blocks of 5 MHz in the 700 MHz band. Minimum bids will be based on fees set in 2013, namely EUR 75 million per lot.
In order to achieve the government's broadband reach goals, under the auction process, existing operators will have to reach broadband coverage of at least 97 percent of homes in each individual German regional state, and 98 percent of homes nationwide. The rules state that the transfer rate should be at least 50 Mbps in each antenna sector. Homes should be able to obtain a service at 10 Mbps.
Under the auction rules, operators will be obliged to provide mobile broadband coverage along national motorway routes and along Intercity Express (ICE) railways. New entrants to the sector will not be subject to these regulations. Operators interested in participating in the auction should apply by 06 March. The auction is expected to take place in Mainz in May/June 2015
Jochen Homann, president of the Federal Network Agency (BNetzA or BNA) said Germany will be the first country in Europe to sell 700 MHz frequencies for mobile broadband thanks to the migrating of television broadcasting to DVB-T2. He said the agency itends to improve broadband competition in rural areas in particular.
