After the auction of the 5G mobile radio frequencies was completed at the beginning of the year, entrepreneurs can now also acquire their own frequencies. The Bundesnetzagentur has reserved local 5G frequencies in the range from 3.7 GHz to 3.8 GHz for this purpose. Licensees can thus set up their own 5G networks limited to their companies. At the beginning of the year, the very high costs of licence fees were still criticised, in some cases severely, but the final fee structure is now also a financially viable solution for small and medium-sized enterprises.
Germany as a pioneer
For Thomas Jarzombek, Commissioner of the Federal Ministry of Economics and Technology for the Digital Economy and Start-ups, the advantages of the now published fee structure are obvious: “Germany is thus one of the global pioneers in the private use of 5G. Here we are laying the foundation for disruptive change. Local frequencies now allow companies to build their own networks from day one. Until now, companies were dependent on the supply of telecommunications providers.”
Campus networks – the future?
Campus networks are exclusive mobile radio networks within a certain area, for example on a company premises. The ability to purchase their own frequencies allows companies to build fully independent 5G networks. The advantages are obvious: closed radio network, fast data transmission with low latency times, guaranteed availability of high bandwidths with a defined data throughput, as well as very high reliability.
At the same time, independent 5G networks offer new possibilities in terms of security. “It is even possible to do what was previously unthinkable: set up mobile phone networks separated from the Internet. This offers a whole new level of security,” emphasizes Thomas Jarzombek.
Award procedure in progress
Since 21 November, companies have been able to acquire their own frequencies. The costs are determined individually according to a fixed fee formula of the Bundesnetzagentur. The calculation is based on the allocated bandwidth, the duration of the allocation, the area (and type) of the allocation area and a base amount of EUR 1000.
In the case of a frequency acquisition for 10 years, a company with 500,000 m² of operating space in a residential area and 100 MHz bandwidth would be charged a fee of 16,000 euros.
Stephan Albers, Managing Director of the Bundesverband Breitbandkommunikation (Breko), welcomes the solution: “We are pleased that the Federal Government has finally agreed to structure the fees for the local 5G frequencies in such a way that medium-sized companies in particular are not burdened disproportionately and consequently refrain from applying for the frequencies”.
Further information and application forms can be found here (in German).