Germany's telecommunications sector faces a pivotal moment as Telefónica Deutschland, a prominent figure in the industry, pushes for the release of underutilized 5G frequencies.

In the most recent spectrum auction conducted by the Bundesnetzagentur, Germany’s federal network agency, a segment of the 5G spectrum was withheld from public offering.

These frequencies were initially earmarked for industrial entities and research bodies to construct localized private networks.

Markus Haas, CEO of Telefónica Deutschland, argues that the currently reserved frequencies are not being effectively utilized.

In a conversation with 'Welt am Sonntag', Haas stated, "It would make sense to allocate these frequencies to mobile network operators, enabling them to quickly provide greater capacities and higher data speeds." Haas noted that fewer than 500 applications have been submitted for these specific 'campus networks', which are meant for limited applications, such as servicing airport zones or small-scale corporate sites.

Consequently, nearly the entirety of Germany's geographical terrain remains untapped concerning these frequencies.

The rationale for reserving a section of the spectrum for private networks was originally propelled by demands from industrial companies.

Major automotive firms like Volkswagen, BMW, Mercedes-Benz, and Audi, alongside industrial giants such as BASF and Siemens, wished to maintain control over their networks to secure data privacy and optimize interconnected manufacturing processes away from third-party providers.

Despite these demands, there appears to be minimal interest in establishing proprietary networks.

The Digital and Transport Ministry has recently started a survey to accurately assess the genuine demand for these campus networks, indicating a potential reevaluation of spectrum allocation by the government due to the varied usage requirements.

In response to this scenario, Haas suggested an alternative where mobile operators could offer dedicated local network slices, allowing businesses to have guaranteed network capacities while safeguarding the privacy and security inherent in a private network.

Additionally, Haas proposes an opt-out model that would enable companies to segment portions of the public network specifically for their needs.

As businesses increasingly partner with telecommunications providers like Deutsche Telekom, Vodafone, and Telefónica in the development and operation of campus networks, the government’s subsequent decisions could critically impact strategic developments in sectors dependent on digital infrastructure.

Telefónica's appeal for a reassessment of spectrum allocation highlights the substantial technological and economic stakes involved, potentially sparking further discourse within Germany's digital policy environment.