A confusion of competences and approvals has hampered the expansion of mobile and fiber optic networks to this day.
(Photo: imago images/Arnulf Hettrich)
Former Economics Minister Peter Altmaier (CDU) liked to provoke the telecoms industry with an anecdote. The poor German mobile phone networks, he complained, are “one of the biggest disgraces to Germany as a technology location”. Four years ago, he confessed that he prefers not to be put in touch with foreign colleagues on car journeys. “Totally embarrassing,” says Altmaier.
What he didn’t mention at the time: Altmaier himself and his ministerial colleagues in the grand coalition were responsible for the rules governing the expansion of the mobile phone networks.
For years, the big telecommunications companies were allowed to get away with leaky networks that didn’t optimize the quality of supply for customers, but rather their own returns. Public complaints like Altmaier’s rarely resulted in concrete measures. In return, the state regularly raked in billions in frequency auctions from the industry, which the companies later lacked when expanding.
It would have made more sense to do without it – and to set up stricter rules that are also consistently monitored. At the same time, the parties should have developed a plan to eliminate the confusion of competences and approvals that has been hampering the expansion of mobile and fiber optic networks to this day.
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In 2019, as part of the frequency auction for the new, theoretically hyper-fast 5G networks, people wanted to learn from the mistakes of the past and tightened the restrictions. As it turns out, that wasn’t enough.
The federal government pays too little attention to the infrastructure
It is true that there are now fewer dead spots on trains or on the freeway, but the requirements will probably not be met again and some regions will still not be supplied. Whether this failure has any consequences remains to be seen. That is embarrassing.
In Germany, the central role played by an efficient and reliable telecommunications infrastructure for business and society is apparently still not recognized. The topic is also not given enough attention by the current federal government.
However, the capital market has long since realized that mobile communications and fiber optic infrastructure is important – and therefore an extremely attractive investment. However, Anglo-Saxon investors in particular are vying for the German networks, and they will pocket the adequate dividends over the years.
There is currently a lot of talk about the dependency on so-called critical infrastructure. It seems as if many politicians only recognize this when it is already too late.
More: Trouble with mobile networks – telecom companies are likely to violate conditions again