1&1 CEO Dommermuth Rules Out Sale to Telefónica - 1&1 defies odds as Germany's fourth mobile network expands beyond targets
1&1, Germany's fourth mobile network, has made steady progress since its launch nearly two years ago. The company now covers over a quarter of German households, exceeding regulatory targets. However, its expansion has come with financial strain and legal challenges.
Under Ralph Dommermuth's leadership, 1&1 entered the market as a fourth operator, competing with Deutsche Telekom, Vodafone, and O2. By the end of 2025, its network reached 27% of households—beating the 25% goal set by the Federal Network Agency. The rollout relied partly on Vodafone's antennas where 1&1's own infrastructure was lacking.
The network currently serves around 12.5 million mobile users. Heavy investment in expansion has pressured profits, though no clear data shows how its arrival has shifted market shares or customer numbers for rivals. Still, analysts note that increased competition has pushed prices down for consumers.
Dommermuth has firmly rejected speculation about selling the company. He remains focused on growth, aiming for 35% coverage by the end of 2026. Cooperation, such as sharing mobile towers in rural areas, is also on the table.
A legal battle with the Federal Network Agency adds to the challenges. Dommermuth argues that extending low-band frequencies to established operators was unlawful. The dispute remains unresolved, casting uncertainty over future spectrum access.
1&1's rapid expansion has reshaped Germany's mobile market, offering consumers more choice at lower costs. The company's next goal is 35% coverage by late 2026, though legal hurdles and financial pressures could influence its path. Dommermuth's commitment to independence means no sale is planned, but cooperation with rivals may play a role in future growth.
