When it comes to mobile Internet, Germany is still lagging behind other countries. High tariff prices are partly offset by poor and slow connections. Now the providers Freenet and EWE Tel are making big accusations against the three network operators.
If you want to book a mobile phone tariff with 5G in this country, you will find it almost exclusively through the major providers. Cell phone discounters do not offer access to the new generation – and there is apparently a reason for that. As the FAZ reports, smaller German providers such as Freenet are annoyed by the prices that Deutsche Telekom, Vodafone and O2 charge for access to their 5G networks. This would block cheap 5G tariffs from other providers.
Freenet complains that the 5G network has not been opened up
Freenet is one of the largest mobile phone providers in Germany. However, the company does not operate its own network, but offers its tariffs in the Telekom network as well as in those of Vodafone and O2. Freenet buys the corresponding capacities for this. Especially when it comes to 5G, this is made difficult for the provider, complains Rickmann von Platen, CEO of Freenet. The network operators would try to market 5G “with absolute pricing power”, von Platen told the FAZ. But why the serious allegations?
Apparently, some mobile phone providers who are dependent on the infrastructure of the three network operators for the realization of their services would like to offer 5G tariffs on more favorable terms. That would be made much more difficult by the three providers. As in the past with the release of LTE, service providers are again largely excluded from 5G. freenet marketed so far only 5G tariffs from the network operators themselves; the prices here start at an average of 30 euros. There is a lack of own, cheaper offers via the own brands.
Disagreement between network operators and service providers
In the 5G frequency auction 2019, the Federal Network Agency urged both network operators and service providers to negotiate non-discriminatory regarding the use of the network infrastructure. However, there are no legal obligations that force companies to cooperate. Service providers such as Freenet are therefore dependent on operators approving the 5G networks at reasonable prices. But according to a statement by Freenet, which also supports the regional provider EWE Tel, the network operators would rather push their “high-priced original tariffs” instead of enabling cheaper access to the network and thus cheaper 5G tariffs. Both Freenet and EWE Tel are therefore calling for a return to the third-party obligation in the forthcoming frequency award.
Economist Torsten J. Gerpott, however, has mixed feelings about this. In a commentary on the cornerstones of the 5G frequency allocation, he wrote at the time that, on the one hand, one could contribute to increasing the intensity of competition in the German mobile communications market, the lower the respective wholesale prices are set. “Conversely, however, with such obligations and low prices for the corresponding upstream services, you also reduce the incentives for the three established providers Telekom Germany, Vodafone and Telefónica Germany to invest in their infrastructure.”
Also read: Large mobile network test 2023 shows significant differences in 5G coverage
That’s what Vodafone and O2 say about the allegations
The latter argument is also taken up by the network operators themselves. TECHBOOK has asked Deutsche Telekom, Vodafone and Telefónica/O2 for a statement regarding the allegations. Vodafone said it sees no problems in competing in the market and is proactive in negotiating with service providers. However, the provider points to the high investments for network expansion and maintenance, which must always be taken into account. Vodafone therefore does not consider a service provider obligation to be helpful.
O2 makes a similar statement. “As O2 Telefónica, we exercise the principle of negotiation in a spirit of partnership and constructively. Negotiations are always conducted by two sides and the results depend on the cooperation of both negotiating partners. The network operator has always attached great importance to cooperation, as evidenced by the numerous mobile phone providers who use the network. “Thanks to our strong partner business, we are a decisive driver of competition in the German mobile communications market.”
Neither of the two network operators respond to the allegations by Freenet and EWE Tel that high prices would be charged for the opening of the 5G network. At the time this article was published, we had no statement from Telekom.