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5G Campus Networks

VDMA Criticizes Planned Frequency Usage Fees

16. Oktober 2019, 10:45 Uhr   |  Harry Schubert

VDMA Criticizes Planned Frequency Usage Fees
© Gil C - Shutterstock.com

The German Federal Ministry of Finance is planning higher fees for the 5G frequencies reserved for campus networks.

Five times more than the Federal Network Agency proposes, the Federal Ministry of Finance wants to collect fees for the use of the 5G frequencies reserved for campus networks. This would make them almost ten times more expensive than the auctioned 5G frequencies for mobile networks.

The VDMA (Verband Deutscher Maschinen- und Anlagenbau e. V.), especially the department electrical automation (Fachverband Elektrische Automation), considers the fee demanded by the German Federal Ministry of Finance for the use of the frequencies reserved for 5G campus networks to be too high. It is five times higher than proposed by the German Federal Network Agency.

Hartmut Rauen, Deputy Managing Director of the VDMA, describes the fee as »unacceptable for industry«. For him, the fee is »a devastating signal after a previously clever network policy«. According to the VDMA, the German Ministry of Economics, the German Ministry of Transport and the German Ministry of Agriculture support the current draft of the German Federal Network Agency.

Hartmut Rauen vom VDMA
© VDMA

Hartmut Rauen, Deputy Managing Director of the VDMA: »It is unacceptable that the demand for fees, which the Ministry of Finance has not thought about enough, should erect a barrier to entry into 5G technology, especially in Germany, which is a medium-sized location, and thus deprive it of the breeding ground for innovative 5G applications«.

Dr. Reinhard Heister, Managing Director of VDMA Electrical Automation, sees Germany facing enormous challenges, including mobility and climate protection. »If the right course is set now, mechanical engineering and plant construction will be able to maintain and expand its innovation leadership in these fields as well«.

In his opinion, innovations must be made possible – and 5G would offer many opportunities for this.

He adds: »Instead of creating a headwind, politicians should actively support German SMEs so that we can be successful worldwide in the application of 5G as an innovation leader«.

Fair Charges for Frequencies of 5G Campus Networks

The VDMA demands a fair price for the industrially usable 5G frequencies, which should be equivalent to the auction price in summer 2019. According to the VDMA, the price according to the draft fee schedule is already around twice as high as the auction price, broken down into the frequency range usable for campus networks.

The VDMA rejects an even higher fee. »The question arises as to what argument the ministry uses to justify a virtually tenfold higher asking price compared to the auction price,« says Hartmut Rauen, Deputy Managing Director of the VDMA.

At the same time, the VDMA demands a simple, unbureaucratic application procedure and legal certainty in frequency allocation in order to give companies investment security in 5G technology.

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VDMA Verband Deutscher Maschinen- u. Anlagenbau e.V., Bundesfinanzministerium der Finanzen, Bundesnetzagentur