What's Happening?
Germany's federal networks agency, Bundesnetzagentur (BNetzA), is relaunching the 5G spectrum award proceedings after a legal challenge. The Administrative Court in Cologne ruled in August 2024 that the conditions
and rules attached to the licenses were not lawful. This decision has prompted BNetzA to reconsider the spectrum allocation process. The original spectrum sell-off saw Germany's four mobile network operators spend a combined €6.55 billion ($7.7 billion) on 2GHz and 3.6GHz rights. As of late 2025, 95% of Germany's territory is covered with 5G technology, with Deutsche Telekom leading the coverage. The focus is now on 5G standalone networks as operators transition from older 4G cores. 1&1, Germany's fourth mobile network operator, has faced challenges in building its own 5G network but has achieved significant milestones, including migrating 12.48 million mobile customers onto its network.
Why It's Important?
The relaunch of the 5G spectrum award proceedings is significant for Germany's telecommunications industry, as it introduces uncertainty regarding the future of 5G spectrum licenses. This development could impact the strategic planning and investments of major telecom operators like Deutsche Telekom, Vodafone, Telefónica, and 1&1. The outcome of these proceedings will determine the competitive landscape and the pace of 5G network expansion in Germany. For 1&1, which has been striving for competitive independence, the proceedings could affect its ability to secure necessary spectrum rights and partnerships. The broader implications for the industry include potential changes in market dynamics, partnerships, and even mergers and acquisitions, as operators seek to strengthen their positions in the evolving telecom market.
What's Next?
BNetzA is conducting an initial written consultation on the next steps, with a deadline for submissions set for January 12, 2026. The outcome of this consultation will provide clarity on whether a new spectrum auction will be held or if existing licenses will be adjusted. The proceedings will involve open discussions with stakeholders to ensure the continued rapid expansion of 5G networks in Germany. Additionally, there is speculation about potential changes in 1&1's relationships with rival providers and possible mergers, which could reshape the telecom landscape. The industry is closely watching these developments, as they will influence strategic decisions and investments in the coming years.
