The money goes to the federal government
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The money goes to the federal government
According to the newspaper, the providers are fighting against it. She quoted Telefónica (O2) on the grounds that the billions spent on the frequencies were now missing for the network expansion, and Telekom with the reference to complex approval procedures.
Mainz (dpa) – It is a starting shot for the expansion of the ultra-fast 5G mobile radio: With the end of the frequency auction, the telecommunications companies have secured spectrum with which they can offer ultra-fast mobile Internet in the future. An overview.
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What is the result of the frequency auction?
The Federal Network Agency sold 420 megahertz spectrum to four companies. Deutsche Telekom and Vodafone were each able to secure 130 megahertz, Telefónica 90 megahertz and the newcomer Drillisch only 70 megahertz. The companies have to pay a total of around 6.6 billion euros to the state.
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Who can feel like a winner, who became a loser?
If you believe the telecommunications companies, they all see themselves as well positioned, but not as shining winners. The reason for this: the high costs – Telekom has to pay 2.2 billion euros, Vodafone 1.9 billion, Telefónica 1.4 billion euros and Drillisch 1.1 billion. Far too much, moan the companies – they would have preferred to put the money into network expansion.
What is clear, however, is that Deutsche Telekom and Vodafone can strengthen their already good position in the market. And if you look at the course of the more than twelve-week mammoth auction, it is also clear: Telefónica and Drillisch wanted more. Telefónica cut back quite early on when it came to bidding, while Drillisch only gave in at the very end in the struggle for a block – and thereby enabled the auction to end. Nevertheless, they don’t have to feel like a loser – Telefónica should continue to play a good role in the market thanks to the spectrum from previous auctions. And Drillisch can also book its rise to network operator as a success, especially since the company, as a newcomer, has been granted exception rules for the expansion.
One more network operator – is that good news for consumers?
Experts assume that, because in the future four instead of three corporations will be vying for customers’ favor with their own networks, competition will intensify and prices for cell phone contracts will tend to fall.
What role will Drillisch play as the new network operator?
So far, Drillisch has been using competitor antennas and networks, but in future they will also have their own systems. Although the company was able to secure less spectrum than the other bidders, it was granted exceptional rules during the expansion. “Drillisch is scarcely equipped with frequencies – that’s enough for the start, but you have to see how it develops,” says Torsten Gerpott from the University of Duisburg-Essen.https://123helpme.me/argumentative-essay-topics/
At the auction in 2000, two newcomers at the time, MobilCom Multimedia and Quam (Group 3G), received even less spectrum, which was many times more expensive than today. These role models are not edifying for Drillisch: Both companies threw in the towel after some turbulence and left the market. “It cannot be ruled out that Drillisch will also exit in a few years”, says Gerpott. But he thinks the scenario that Drillisch will buy the German business from the Spanish Telefónica group and thereby significantly strengthen its network is more likely. “In the medium term it is quite possible.”
6.6 billion euros in auction proceeds – isn’t that much too much?
One could get that impression, even looking back at the auctions of previous years. Telekom and Vodafone calculate that around 50,000 new mobile radio stations could have been built with the total costs. Expert Gerpott, on the other hand, does not believe that the providers have been taken advantage of: “These are completely normal market prices,” he says, pointing out that less spectrum was over the table in the previous auctions. If you calculate the costs down to one megahertz, the same amount is paid as before, namely 15.5 million euros for one megahertz.
What happens to the income?
The money goes to the federal government. Opposition politicians like Frank Sitta, member of the FDP Bundestag, warn against it should not “seep into the budget”. It doesn’t, the federal government says. Infrastructure Minister Andreas Scheuer (CSU), for example, emphasizes that “100 percent” of the money is going to a funding item that is intended to push the fixed-line broadband expansion in rural areas and enable the digitization of schools. Vodafone and Telefónica are calling for the money to be used to promote the expansion of the mobile network. That should remain wishful thinking.
Why is 5G so important?
Germany’s industry wants to remain globally competitive thanks to the ultra-fast standard. The download is around 100 times faster compared to 4G / LTE, the latency – i.e. the response time – is almost in real time. Whether connected production machines and robots or self-driving cars – 5G is the key.
When do private individuals benefit from 5G?
It still takes some time. So far, there are hardly any smartphones on the market that are 5G-capable. It is also not yet clear when so many new systems will be activated that the first 5G cellular contracts can be sold. The companies are still covered on the question of the 5G network start. The 5G smartphones and contract are likely to be something for technology lovers for the time being and only be fully usable in large cities.
“In the second half of 2020, 5G should be ready for the mass market when enough smartphones are available,” said Telekom Germany boss Dirk Wössner. But he emphasized that 5G was by no means a “pure industrial issue”. “The amount of data from services that are also used by private customers will increase exponentially – 5G will also be important for this in the future.” For applications of virtual reality or for data-intensive online games, 5G is also relevant for private customers, according to the manager.
MADRID (dpa-AFX) – According to a press report, the Spanish telecom group Telefonica received a billion-dollar purchase offer for its Latin America business. A consortium of local companies had offered 10 billion euros for a 51 percent majority in Latin American activities outside of Brazil, reported the Spanish daily “El Mundo” on Monday, without naming specific sources. Telefonica itself denied the rumors and told the newspaper it was not aware of such an offer. Nevertheless, the share rose.
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On the Spanish stock exchange, the price rose in the morning by a good 1 percent to 6.23 euros, which meant the top in the somewhat ailing European leading index Eurostoxx 50. According to Jerry Dellis of the Jefferies analysis company, such a move would reduce Telefonica’s exposure to South America in one fell swoop and bring a welcome windfall for the Spaniards.
The consortium is said to be one or two businessmen who are leaders in the eight countries that make up Telefonica’s business unit. According to the plan, the remaining 49 percent should be divided between the parent company of Telefonica Deutschland (O2) and smaller shareholders.
Telefonica’s plan for a spin-off of the business has been known since the end of November. Telefonica wants to concentrate on the core markets of Spain, Brazil, Great Britain and Germany, which represent around 80 percent of sales and operating profit.
Bonn / Oldenburg (dpa) – In the fiber optic internet expansion, an important authority has given the green light for a large-scale model project.
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The Federal Cartel Office released the joint venture between Deutsche Telekom and the Oldenburg regional provider EWE, the authority announced in Bonn.
The cooperation will “lead to significant improvements in the telecommunications markets in the affected region and also in rural areas”, expects the Cartel Office chief Andreas Mundt. At the beginning of December he had already given his consent to another part of the cooperation.
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The former state-owned company and the regional top dog can now tackle the expansion of the expensive fiber optic cables together – so far they have been competitors.
In doing so, however, they have to meet the requirements of the Cartel Office, according to which competitors are allowed to use their lines and very high investments have to be made. Despite the concessions, the merger is likely to put competitors such as Vodafone under pressure.
It is about the EWE market area, so primarily Lower Saxony – here it is the area north of Osnabrück to the gates of Hamburg. The merger could, however, be a kind of model character for other regions if companies there also want to do common cause in the expensive fiber optic expansion.
Menlo Park (dpa) – WhatsApp is moving away from plans to introduce advertising in the chat service, which have been smoldering for years.
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Most recently, work has been done to accommodate ads in the so-called “status” area, in which users can share photos and videos with their WhatsApp contacts for a day. Now a spokesman said on Friday that they still see this as a long-term opportunity – but there is no detailed schedule for it.
The Wall Street Journal previously reported that the team that was supposed to work out the advertising plans had been disbanded.
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WhatsApp has long been struggling to find the right business model. The WhatsApp founders originally categorically rejected any advertising and wanted to finance the chat service through a subscription fee of one dollar per year. Then they sold the company to Facebook in 2014 in a deal that ended up being around 22 billion dollars. The online network – which is financed almost exclusively through advertising – relied on a free WhatsApp and took its time thinking about how money can be made with the chat service.
Current plans include asking companies to checkout for additional features when communicating with their customers via WhatsApp. Work is also underway to introduce a payment function in several countries.
An internal dispute over the advertising plans is considered to be a key trigger for the departure of the two WhatsApp founders Jan Koum and Brian Acton, who initially stayed on board after the takeover by Facebook.
SANTA BARBARA (dpa-AFX) – The loudspeaker provider Sonos has disappointed investors with its first quarterly report since going public in the summer. The stock temporarily lost around a fifth of its value on Tuesday and slipped to the $ 17 mark. Sonos, a provider of networked speakers that wants to benefit from the music streaming boom, went public in early August and the price jumped a third to just under $ 20 on the first day of trading.
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In the past quarter, Sonos was able to increase sales by eleven percent year-on-year to a good 886,500 devices. But sales fell 6.6 percent to $ 208.4 million. This is due to the fact that the $ 199 small loudspeaker Sonos One with the Amazon assistant software Alexa on board was now selling particularly well – and a year earlier, the new model, the Playbase soundbar, which was more than three times as expensive, was doing particularly well.
The decline in sales also impacted earnings: The quarterly loss rose to $ 27 million from 14.5 million a year earlier. A company rebuild also contributed to this, which now generated one-time costs of $ 4.5 million – but is expected to bring annual savings of $ 14 million.
FRANKFURT (dpa-AFX) – After the recent price jump on Friday, investors first took a breath on Monday.
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