"The 5G networks we have are predominantly underutilized"
In the realm of 5G advancement, Germany occupies a significant position. However, the issue of underutilization of these networks remains prevalent. According to Markus Haas, CEO of Telefónica Deutschland, "Our 5G networks are in place, fully developed, yet almost vacant."
Germany's population overwhelmingly has access to 5G, with an impressive 90% coverage. The aim is to maintain and even increase this percentage, with Haas leading the charge as the CEO. He believes the technology's full potential remains untapped. "Our 5G infrastructure is complete, yet mostly devoid of usage," Haas shares during the 'So techt Deutschland' ntv podcast.
The reluctance among industrial customers is one of the primary reasons for this underutilization. "We've tested various applications in the trial phase," Haas explains, "But many of these cases haven't progressed into mass production or have failed to make a significant market impact."
Meanwhile, telecommunications companies encounter familiar hurdles, such as bureaucracy. Bureaucratic red tape can cause lengthy delays in certain German states, where Haas reports waiting up to a year and a half for a building permit. These delays impede expansion significantly, but Haas suggests a solution. "I propose a system where construction can commence without a decision after three months, provided a 99.5% approval rate is granted for building permits in the end," he suggests.
Despite these obstacles, Germany's progress is commendable. Customers notice notable network improvements, and the market is fiercely competitive. On the flip side, price remains a significant barrier for the average German customer who prefers paying less than 12 euros monthly.
The underutilization of 5G networks in Germany is not solely due to the infrastructure, as Haas points out. He mentions, "We've tested various applications in the trial phase, but many of these cases haven't progressed into mass production or have failed to make a significant market impact." Additionally, the mobile internet, a critical part of 5G, is struggling with industrial customers' reluctance and bureaucratic red tape, which causes lengthy delays in certain states.
