Frequency plans pursued by the Federal Network Agency defer broadband expansion

-Decision planned for 12 October impedes non-discriminatory competition on the German mobile telecommunications market
-Investment potential in the location Germany is not exploited
-Legal review will defer broadband expansion in "white spots"
MUNICH. Telefónica O2 Germany has warned of the deterioration of the competitive situation and propensity to invest in mobile telecommunications if the Federal Network Agency implements plans to auction off new mobile telecommunications licenses without any amendments. "The current plans pursued by the Federal Network Agency will result in the distortion of competition as the unique opportunity to provide non-discriminatory access to frequencies is left unused", says Markus Haas, who is responsible for all regulatory matters in his capacity as Managing Director for Telefónica O2 Germany. Provided the Advisory Council of the Federal Network Agency agrees to these proposals next Monday this move will negatively impact the propensity to invest in the mobile telecommunications market and the planned expansion of the broadband in rural regions. "If the Federal Network Agency refuses to amend their proposals we are compelled to initiate legal review", Haas emphasizes.
On 12 October, the bidding procedure for new mobile frequencies will be presented to the Advisory Council of the Federal Network Agency consisting of representatives of the Federal Parliament and the Federal Council of Germany. The auction is planned to take place at the beginning of 2010 and will be the most comprehensive allocation of frequencies for mobile radio in Germany in the last ten years. Included in the bidding are frequencies for the so-called "digital dividend" released due to the digitalisation of radio broadcast. In line with the requirements stipulated by the Federal Government the frequencies must also be used to close the broadband supply gap, the so-called "white spots", in rural regions. Telefónica O2 Germany regards the Federal Network Agency's submission as a severe preference of D-networks and has called for the amendment of the bidding procedure by the Agency. "The allocation of these frequencies will contribute to the decision on market opportunities in the next ten to twenty years", Haas emphasizes. "A fair bidding procedure is required to ensure continuously strong competition and the high propensity to invest in the German mobile telecommunications market - to the benefit of customers." Telefónica O2 Germany is committed to support the Federal Government's broadband strategy by providing investments and has submitted its proposal for a bidding procedure with evident obligations for the expansion of the broadband in rural regions.
Telefónica O2 Germany GmbH & Co. OHG belongs to Telefónica Europe and is part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. Telefónica Europe has about 48 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.