Germany’s two smallest mobile networks – Telefonica’s O2 Germany and KPN’s E-Plus – are taking legal action against the country’s regulator, arguing that an upcoming spectrum auction favours the larger players. According to a Dow Jones Newswires report, Germann regulator Bundesnetzagentur (BNetzA) is planning to auction new spectrum – including 800MHz digital dividend spectrum – next year in order to provide for so-called next-generation services and extend services to rural areas. However, the smaller operators argue that, under the rules of the auction, market leaders Deutsche Telekom (T-Mobile) and Vodafone could secure two thirds of the new spectrum below 1GHz, which could curb future competition. The situation has arisen because T-Mobile and Vodafone already mainly use frequencies in the 900MHz band, while E-Plus and O2 operate mainly in the 1,800MHz band.
E-Plus said it will take legal action against the regulator's decision at the administrative court of Cologne and will also ask a court for accelerated proceedings. An O2 spokesman told Dow Jones Newswires that the operator will also take legal steps against the auction's rules, citing similar reasons. The German regulator declined to comment. T-Mobile and Vodafone had reportedly earlier welcomed the auction rules.
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