Germany to make decisions on GSM and UMTS bands

April 24, 2005

The President of the Regulatory Authority for Telecommunications and Posts (RegTP), Matthias Kurth, has a pleasant message for the mobile market in Germany:

"In spite of the satisfactory supply of frequencies for mobile communications, we are in a position to mobilise another 10 MHz for GSM. This enables us to do justice not only to the commercial requirements of mobile communications but also to the growing demand on the part of customers and to constantly increasing requirements. Not just in the case of UMTS but also in the GSM sector substantial investments are being made as in the past, and network installation has not yet been completed. Contrary to original assumptions, a complete replacement of GSM by UMTS will be delayed by years. Hence the current planned extension of the frequency award in the GSM sector is deemed expedient and corresponds to market requirements," according to Kurth.

After negotiations with the military users RegTP was able to convince the Ministry of Defence (BMVg) to dispense with further military use of the extension bands in the GSM sector (E-GSM bands). The spectrum released in the range 880-890/925-935 MHz (10 MHz paired) is to be placed at digital cellular mobile communications' disposal as additional spectrum.

Matthias Kurth stated: "This spectrum in the range 900 MHz is of extreme importance especially for GSM network expansion in rural regions. Unlike in many other European states, the E-GSM bands in Germany were hitherto subject to military use. With the newly announced renunciation the path is free to provide these frequencies to digital cellular mobile communications in Germany as well."

RegTP therefore intends to update the relevant frequency usage plans direct and to include a reference to the future usability of the formerly military range for "digital cellular mobile communications".

As Kurth explained: "The frequency usage plans are to be made available for consultation in May. So as to be able to furnish the market with the spectrum for civil applications as soon as possible, the question concerning the use of the E-GSM frequencies in the market is to be posed not after completion of the formal plan compilation procedure but concurrently with the consultation of the subplans. "It is planned to decide on the use of the E-GSM bands by the end of 2005. At the same time as the hearing on the concept of the provision of the E-GSM bands for the mobile communications sector the subject "UMTS" is again to be raised."

In view of the return of the UMTS frequencies by Mobilcom at the end of 2003 and the fact that Quam will not be building a UMTS network, interested parties are to be invited to comment on the future use of the frequencies in the UMTS core band (1900 - 2170 MHz).

At the same time, the future usability of the UMTS extension band (2500 - 2690 MHz) is to be the subject of the hearing. "According to international harmonisation, it must be possible to use the UMTS extension bands by 1 January 2008 for UMTS/IMT-2000 mobile communications. Therefore, initial scenarios need to be developed for the award possibilities for further UMTS frequencies", explains Kurth. "To counter scarcity scenarios where possible, the award possibilities in the core and extension bands are to be jointly submitted for consultation. The hearing will also provide the opportunity to deal with the wish expressed by companies with rights valid until the end of 2007 to extend their usages in the UMTS extension band."

Concluding, Kurth said: "We wish to elaborate a blanket concept for the future of the mobile communications market which opens up planning certainty for all concerned and which favours further growth in this highly innovative sector.