BONN/MONTABAUR (dpa-AFX) - In its difficult market entry as the fourth German mobile network operator, telecommunications provider 1&1 is receiving support from the Federal Cartel Office. In September, the Federal Network Agency suggested that the usual frequency auction should be dispensed with - this would be a setback for 1&1, which needs additional frequencies for its own network, which is currently being set up. Instead of an auction, current usage rights would be extended - and the United Internet subsidiary 1&1 would be left out in the cold. In a position paper, the Cartel Office has now criticized the Network Agency's plan and warns of negative consequences for consumers.

1&1 acquired its own mobile spectrum for the first time in 2019 and is currently using it to build its own mobile network. The company is making slower progress than expected. So far, the company has been using competitors' networks and paying rent for them. In an auction expected for 2024, 1&1 wanted to upgrade and purchase additional frequency blocks on other bands. Should this auction actually be canceled, 1&1 would come under additional pressure. The Cartel Office warns that the pending extension would put the market newcomer at a decisive disadvantage compared to the established mobile network operators. Investments already made would be devalued.

Consumer advocates and other industry experts expect the fourth German mobile network operator to stimulate competition - consumers would have more choice and better offers than today. The Federal Cartel Office's statement is part of a consultation phase following publication of the Network Agency's proposal. The competition authorities only have a secondary role here, the Network Agency has the final say. Nevertheless, the opinion of Germany's top competition watchdogs will certainly be given weight./wdw/DP/zb