BERLIN, May 13 (Reuters) - Germany's network agency Bundesnetzagentur decided not to give new frequency usage rights to mobile phone operators at an auction normally worth billions of euros, according to a draft presented by the regulator on Monday.
Instead, it decided to extend existing frequencies for five years as it wants mobile operators to improve their current network infrastructure, especially in rural areas, where mobile phone connectivity is not that widespread.
The auction, where the agency sells frequencies worth billions of euros, normally takes place every four to five years and is important for mobile phone operators as it allows them to extend their network coverage and get more clients.
The decision not to auction off the new rights particularly hits smaller operators like 1&1 as their network reach is relatively small compared to giants like Deutsche Telekom , Vodafone and O2 Telefonica.
Bundesnetzagentur plans to oblige the three bigger providers to allow 1&1 to co-use their frequency capacities, to smoothen the competition disadvantages for the new player.
Now members of business and research communities as well as the general public will have until early July to express their opinions on the draft before it gets a final approval in the autumn.
(Reporting by Andrey Sychev and Hakan Ersen, Editing by Friederike Heine)
Vodafone (VOD)