Communications (German market)

2024: German telecom companies must dismantle Huawei and ZTE equipment by 2029

In mid-May 2024, it became known that the Ministry of Foreign Affairs and the Ministry of Economy of Germany supported the initiative of the Ministry of the Interior of the country to impose a ban on the use of equipment by local operators Huawei and. ZTE This measure is dictated by concerns about national security.

According to reports, in Bloomberg accordance with the new requirement, German telecom companies must exclude " 5G critical Chinese components" from the national core network by January 1, 2026. In the future - by 2029 - operators in Germany will need to reduce dependence on Chinese components in their access networks and transport networks. Thus, Huawei and ZTE equipment must be completely dismantled.

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However, it is alleged that participants in the telecom industry oppose the initiative. Deutsche Telekom AG, Germany's biggest mobile operator, previously said banning Chinese components by 2026 was unrealistic. Huawei itself is also talking about the negative consequences for the country.

This approach will have a negative impact on the digital transformation in Germany, hinder innovation and significantly increase construction and operation costs for network operators, says the Chinese supplier.

It is also said that the abandonment of Huawei and ZTE equipment will result in huge costs for Germany. For example, the resource The Register notes, the German state railway operator Deutsche Bahn calculated that if an order is issued to dismantle and replace the equipment of Chinese suppliers, the losses will amount to more than €400 million. And the Chinese embassy believes that roughly 60% of Germany's 5G network equipment is made by Huawei.^[1]

In July 2024, Germany's ruling coalition agreed on a compromise proposal to exclude Huawei Technologies Co. components from the main 5G mobile network by the end of 2026 on national security grounds.

The companies will have until the end of 2029 to remove parts made by Huawei and ZTE Corp. from access networks and 5G transport networks.

2022:59% of 5G equipment shipments to Germany come from Huawei

In mid-December 2022, the Copenhagen consulting company Strand Consult released the results of a study that suggests that European countries are still heavily dependent on Chinese equipment for 5G networks.

We are talking about platforms Huawei and competing. ZTE states Europe Many have banned radio access equipment from being used in their 5G infrastructures PEOPLE'S REPUBLIC OF CHINA for security reasons amid intense diplomatic pressure from outside. USA However, the Strand Consult report indicates that some key opponents of Chinese solutions continue to actively apply them to their mobile networks.

More than half of 5G equipment in Germany comes from China

It is estimated that in Germany's 5G infrastructures, where operators such as Deutsche Telekom and O2 operate, Chinese equipment accounted for 59% as of the end of 2022. This is even more than in 4G/LTE networks, which rely on suppliers from China by 57%. Moreover, Huawei's share in Berlin is even higher than in Beijing, where the company faces fierce competition from ZTE.

Great Britain Finland In and Chinese equipment accounts for 41% each in fifth-generation networks. Switzerland In the share reaches 43%, Italy in - 51%, in - 53 Hungary %. In this Bulgaria indicator is 65%, in - 72%, Netherlands in - 76%. Romania And the Cypriot 5G infrastructure relies 100% on solutions received from the PRC. At the same time, a number of European countries are trying to minimize the use of radio access equipment from China: for example, its share Belgium is no more than 30%, 25%, and Greece 17%. France And some European states have already completely abandoned the use of Chinese 5G platforms: they include,,,,,,,, etc Czech Republic. Denmark Estonia Latvia Luxembourg Slovakia Malta Norway Sweden ^[2]

2021

In Germany, Internet providers were obliged to return money to subscribers for slow Internet

In December 2021, a new law comes into force in Germany, which will allow subscribers to pay less for operator services if the real channel width does not correspond to the stated in the contract. ISPs will have to give discounts to consumers facing slow internet. This could radically change the relationship between consumers and internet service providers.

Users will check the speed of the Internet, and if there is a difference between the real test results and what their Internet providers promised, they will be required to receive a discount in their account.

In Germany, Internet providers were obliged to return money to subscribers for slow Internet

According to Bleeping Computer, customers will have to use an official Internet speed measurement application provided by the German Federal Network Agency to check speed. A total of 20 tests should be performed over two consecutive days, 10 tests each day. This method will ensure that any rate deviations are repetitive and/or continuous rather than the result of a brief network failure.

Provided that the download and upload speed on the Internet is below 90% of the promised value, customers will be entitled to a discount.

German consumer protection bodies note that deviations from contractual agreements affect more than 50% of users in the country, but internet consumers continue to pay the same amount for their internet package regardless of speed deviations.

Thus, this law promises to provide a balanced dynamics and will be an incentive for Internet providers to fulfill their marketing promises and offer a more stable quality of services.

As of October 2021, Germany ranks 42nd in the ranking of countries with the fastest wired broadband Internet, according to Ookla data.^[3]

Germany allocated 250 million euros for research of 6G networks

At the end of June 2021, German Federal Minister of Research Anja Karliczek allocated 250 million euros for research on 6G networks. A total of about 50 scientific and industrial partners will take part in the work of the four research centers, who will be able to combine their experience and competencies.

The coordination of the work of these four centers will be carried out by the German Center for Artificial Intelligence Research, the Fraunhofer Institute for Communications and the Heinrich Hertz Fraunhofer Institute, the University of Aachen, as well as the universities of Dresden and Munich. They want to start work in August 2021. Research will be conducted on new materials, as well as on components such as antennas and amplifiers, radio cells and software.

Germany invests €250m to research 6G networks

6G is expected to form the central nervous system of our network life by 2030 and will allow efficient and uninterrupted data transfer 100 times faster than 5G, "Karlicek explained. In April 2021, the minister announced that research on 6G networks would receive funding totaling 700 million euros. Already allocated 250 million are considered an integral part of this research initiative. Karlichek stressed that the technological sovereignty of the country, which should not become dependent on other states, is extremely important for the country.

Hub 6G-life will promote cutting-edge research into future 6G networks with a focus on human-machine interactions, 6G-RIC wants to develop open-interface mobile radio systems, 6GEM develops a holistic system of 6G networks - from hardware to software - to build a flexible network infrastructure, and Open6GHub is working on a holistic 6G system that will meet the needs of users and society after 2030.^[4]

2020: Telecom manufacturers in Germany will have to prove that their equipment cannot be used for espionage and terrorism

On December 16, 2020, the cabinet of German Chancellor Angela Merkel approved a bill that would require companies involved in the creation of critical infrastructure, such as high-speed 5G networks, to provide guarantees that their equipment cannot be used for sabotage, espionage or terrorism.

The bill, which has already been sent to parliament, aims to address concerns that suppliers, including Chinese tech company Huawei, could pose a security risk if they have access to major parts of the German telecommunications network.

Telecom manufacturers in Germany will have to provide evidence that their equipment cannot be used for espionage and terrorism

Companies will have to provide a "guarantee" that suggests there is evidence that components of critical systems cannot be used for illegal purposes.

A supplier that doesn't meet a high reliability threshold could be suspended from 5G network deployments. This measure does not mean a complete ban on Huawei in Germany, as required, for example, in the United States.

This law deals with fundamental IT security issues, not individual manufacturers, "said German government spokesman Steffen Seibert.

Huawei denies U.S. accusations of Huawei espionage by China, Germany's major trading partner. In a statement, the company welcomed the bill.

In terms of 5G deployment, we believe this means that higher and more uniform security standards will apply for all technology providers, Huawei noted, adding that the law will allow all suppliers to compete fairly if they comply with security requirements.

The company said that such an approach, based on facts and standards, is a model for solving global problems. cyber security Huawei will continue to work transparently with regulators, customers and industry organizations to ensure the security of mobile networks.^[5]

2019: Frequencies sold for €2.1bn at auction

In early April 2019, the German Federal Network Agency announced the sale of 5G frequencies worth $2.1 billion as part of an auction. It involves four telecom operators: Deutsche Telekom, Vodafone, Telefonica and 1 & 1.

Bidding started on March 19, 2019, their participants began the struggle for 41 sets of radio frequencies for the development of networks in the 5G standard. The auction will last at least three weeks, its organizers expect to attract a total of up to 5 billion euros. Deutsche Telekom, Vodafone and Telefónica paid almost the same amount (5.1 billion euros) in 2015 in the  fight for LTE frequencies.

Germany sells 5G frequencies at auction for 2.1 billion euros

Reuters news agency draws on the old-fashioned holding of the auction. Representatives of the operators are in separate rooms in the former army barracks in Dusseldorf. They do not have smartphones with them, and communication with the head office takes place via fax.

Handelsblatt writes that by March 2019, about two-thirds of German companies still use fax machines on a regular basis, and only half of them use video conferencing, and only a third of business representatives have introduced instant messengers and online collaboration tools. The reason for this popularity of the fax is as follows: the Germans consider this type of communication safer than digital messages, and documents sent by fax are of legal importance in contrast to emails.

The auction, at which 5G frequencies are played in March-April 2019, runs from 8:00 to 18:30 with a lunch break from 12:00 to 14:00. Initial rates range from 1.7-5 million euros, but the amounts offered to operators are much higher. For example, 1 & 1 acquired the 2 GHz band for €114.9 million.

By the way, the participation of 1 & 1 in the auction was in question, but the company eventually allocated 2.8 billion euros for the purchase of 5G frequencies in the hope of becoming the fourth largest mobile operator in Germany^[6]

2018: Proportion of residents without a smartphone

Share of residents of countries without a smartphone, 2018

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