In this context, it is important to draw a distinction between allocations carried out by the telecommunications authority and those carried out by the regulatory authority.
Allocation by the telecommunications authority: In cases where frequencies are allocated by the telecommunications authority, the licensee is required to pay an allocation fee set by an ordinance of the Federal Ministry of Agriculture, Regions and Tourism.
Where frequencies are allocated by the regulatory authority, the allocation procedure is carried out in the form of an auction. In such cases, the authority sets a minimum bid for the frequencies to be allocated. This minimum bid forms the basis for the auction, which determines the actual amount to be paid for the frequencies.
In addition to the fees incurred upon the allocation of frequencies, the licensee is also required to pay ongoing fees (spectrum fees). These fees are prescribed by the telecommunications authority (TKGV).