Berlin, 15.03.2024 – The report by WIK-Consult and EY on behalf of the Federal Network Agency on the competitive situation in the mobile telecommunications market has significant shortcomings. It is therefore not suitable for making valid statements about competition in mobile telephony. These are the findings of a report published today by experts Prof. Dr. Ralf Dewenter (Helmut-Schmidt University Hamburg) and Jun.-Prof. Dr. Gordon J. Klein (University of Münster) on behalf of the German Broadband Association (BREKO).

In the current procedure for the provision of frequencies in the 800 MHz, 1,800 MHz and 2,600 MHz ranges, the Federal Network Agency decides not only on the manner in which the frequencies are provided but also on whether measures are taken to maintain or achieve effective competition on the mobile communications market. However, the expert opinion commissioned by the authority on this issue is completely unsuitable for valid statements on the competitiveness of the mobile communications market.

In their analysis, Dewenter and Klein come to the conclusion that the interpretation of the results sometimes appears tendentious and that the report often lacks the necessary neutrality. Reliable statements about effective competition are not possible on the basis of the report results. The following reasons speak for this:

The methodology used to analyze the competitive situation on the wholesale and retail markets does not allow any further conclusions to be drawn regarding a well-founded assessment of competition. Instead, data is viewed in isolation from one another and inadmissible conclusions are drawn, which leads to a biased interpretation of the results. Overall, this is a very selective and unstructured approach that runs through the entire report.

Despite their increasing relevance, bundled products consisting of a fiber optic connection and mobile communications are dismissed as niche products and not analyzed further – even though they are essential for companies expanding fiber optics in order to be able to make competitive offers to end customers.

There is no analysis of the highly relevant business customer market, which is much more concentrated than the private customer market.

Innovations by service providers and virtual network operators – such as new products, technologies or business models – are ignored. Instead, it is claimed without evidence that a service provider obligation cannot contribute to innovation.

The implementation and evaluation of the market survey conducted for the report is inadequate. There is neither sufficient information about the content of the survey nor a systematic analysis of the questionnaires completed by the companies.

With a view to the advisory board meeting of the Federal Network Agency on March 18, which will also deal with the competitive situation in the mobile communications market, BREKO head of the capital office Sven Knapp explains:

“Effective competition in the mobile communications market is currently a utopia. There is therefore no alternative to the introduction of an effective service provider obligation. Telekom, Vodafone and Telefónica are still systematically delaying the offer of high-performance 5G tariffs by competitors without their own mobile network – to the detriment of consumers, but also the expansion of fiber optics, as it is not possible for companies without their own mobile network to market competitive bundled products consisting of fiber optic access and mobile communications. The results of the report commissioned by the Federal Network Agency, which completely ignore the reality of the market, must therefore not play a role in the Federal Network Agency’s upcoming decision. Taking them into account would be the second gift for the three established mobile network operators alongside the planned extension of frequency usage – without mobile network expansion making any faster progress as a result.”

The report commissioned by BREKO can be downloaded here.