BONN (dpa-AFX) - Because of deficits in mobile network expansion, a regulatory agency is considering making Germany's major telecommunications providers pay for the first time. "The Federal Network Agency currently intends to impose a fine of up to 50,000 euros per site," reads a letter from the Bonn-based authority to its advisory board. The document has been made available to dpa. It concerns sites that should actually have been built by the end of last year as part of the 2019 frequency auction, but were not. It goes on to say, "In addition, penalty payments may also be levied." Mandatory fines could have even greater financial consequences.

The three incumbent network operators Telefónica (O2), Vodafone and Deutsche Telekom say they have met key requirements of the expansion obligations - such as ensuring that a cell phone connection with a download of 100 megabits per second is possible in at least 98 percent of households in every German state. In contrast, all three clearly failed to meet the benchmark for "white spots. These are areas where no cell phone network can transmit 100 megabits per second. Instead of 167 of its own sites in such areas by December 31, 2022, Vodafone reported only 86, Telefónica 61 and Telekom 38.

Among other things, the threat of sanctions in the letter to the Advisory Board refers to such sites. The network operators unanimously emphasize that they are making progress. There are 14 more under construction, says a Telekom spokesman, for example. He also stresses that at the remaining 115 sites still missing, "for the most part, there are no wireless holes," but there is "basic coverage" there - in other words, the cell phone gets broadband reception, but the mandatory minimum transmission of 100 megabits per second is missing.

In addition, the companies point out that they received a state list of the affected areas too late and that in some places the expansion is simply not possible - for example, if no landowner is willing to rent a piece of land for a radio mast. The erection of such masts is also difficult in nature reserves. If it is impossible to erect antennas for "legal and factual" reasons, the Federal Network Agency does not consider this to be a lapse.

Thus, it is unclear how large the gap is to the mandatory requirement of 167 - depending on how many sites the Federal Network Agency considers "legally and factually" impossible, it is smaller or larger. The Bonn-based authority is currently reviewing the documents submitted by the companies at the beginning of January.

The most blatant failure to meet the expansion obligations comes not from the three established network operators, but from newcomer 1&1. This company had purchased frequencies at auction for the first time in 2019 and is currently building its first mobile network of its own - until now, 1&1 has been selling cell phone contracts in which customers are primarily connected to the O2 network. In return, 1&1 pays rent to O2. The Montabaur-based group should have activated 1,000 5G stations at the turn of the year, but in fact there were only five. 1&1 justified this with delivery problems at a construction partner. 1&1 aims to reach 1000 in the summer of 2023. If 1&1 is sanctioned, it could be expensive.

However, it is open whether the Federal Network Agency will impose fines or penalty payments at all. After the 2015 spectrum auction, not a single network operator complied with all obligations either - Telefónica (O2) in particular revealed serious deficits at the time. The regulatory authority also threatened sanctions then, but turned a blind eye in the end.

It could be the same this time. In the letter to the Advisory Board, which meets this Monday, it says: "When imposing sanctions, an overall assessment takes place in which the respective individual case is to be evaluated." The sentence leaves room for interpretation. It is quite possible that the authority will once again only issue a threat in order to increase the pressure, but will ultimately waive the sanction sword.

However, the telecommunications companies should not be too sure about this. The regulatory authority is now headed by Klaus Müller, who previously headed the Federal Association of Consumer Organizations. He is known for having a stronger eye on consumer protection issues than his predecessor - instead of foregoing a legal dispute with companies, the authority might want to enter into it this time and enforce sanctions./wdw/DP/jha