This time, the German government has to settle for less: After 224 rounds the auction for mobile-phone frequencies has ended and the government has raised just 4.38 billion euros total. In August 2000, it generated 50 billion euros from the sale of 3G licenses, the largest frequency auction in Germany so far. The four German network operators that took part in the last auction – Deutsche Telekom (T-Mobile), Vodafone, E-Plus and O2 Germany – want to use the new spectrum to expand their broadband coverage, for example, by setting up fourth generation Long Term Evolution (LTE) networks, especially in rural areas that do not have access to high-speed Internet connections over cable.

E-Plus is the only operator not having secured parts of spectrum of the coveted “digital dividend” around 800 MHz that television companies cleared when switching from analogue to digital broadcasting. One could think that E-Plus has just bid for these frequencies in order to inflate prices for the other operators. With the 800-MHz frequencies operators can spend expand their broadband infrastructure in rural areas for comparably little money. The operators are already running 4G test trials in certain regions. First commercial 4G networks are expected to be up at the end of this year.

Network Coverage Maps of German Mobile Phone Providers

• Deutsche Telekom
• Vodafone
• O2 Germany
• E-Plus

Check the results of the mobile frequency auction at www.bundesnetzagentur.de (in German).