The Hidden Cost of Untrusted Vendors in 5G Networks – State of Discussion and Estimations for Germany

• March 2021
• Johannes Rieckmann, Tim H. Stuchtey

This country study is a complement to our in-depth policy paper on the hidden cost of untrusted vendors in 5G networks. Following a brief overview regarding frequencies and mobile network operators in Germany, including their market position and stance regarding procurement and usage of network equipment, we have a look at the timeline of 5G rollout in Germany. We provide the reader with a concise overview regarding the upcoming regulation in form of the draft of the Second IT Security Act and its likely impact, if implemented well. After briefly assessing a purely competitive analysis by a British institute in terms of the underlying assumptions and putting their core results in perspective, we turn for completeness to the obvious costs that could arise, for example, from sabotage and attacks on the communications network in the context of geopolitical tensions. By contrast, hidden costs, which can be quantified for Germany in some of the areas discussed in the policy paper, are much more likely to occur and at the same time more challenging to quantify.