1&1 Seals Deal with Rival O2, Boosts Market Position
In anticipation of Germany's fourth mobile network launch, telecom giant 1&1 has struck a deal with competitor Telefónica Deutschland (O2). This move is set to bolster 1&1's market standing, according to an announcement made in Montabaur on Wednesday. The existing national roaming agreement has been expanded to incorporate the 5G radio standard, and the new mobile network is set to go live on December 8.
With this agreement, customers lacking 1&1's own antennas will now have access to O2's 5G network. Initially, the contract only covered O2's 4G network, but this expansion now includes 5G capabilities as well. However, specific terms of the new contract remain undisclosed. This strategic move is expected to significantly boost 1&1's chances of attracting new customers due to the addition of 5G roaming capabilities.
1&1 has found a way to secure 5G roaming deal with a competitor during the launch phase of its mobile network. This arrangement, known as roaming, ensures that customers maintain a connection even in areas lacking 1&1's infrastructure, which covers most of Germany due to the company's small network. A roaming contract with Vodafone is set to commence in summer or fall 2024, strengthening 1&1's position further. The partnership with O2 is gradually coming to an end, hence.
Initially, 1&1 functioned as a virtual network operator, employing competitors' networks for its mobile operations. Now, with its independent mobile network on the horizon, the company faces significant costs. The United Internet subsidiary invested approximately 1.1 billion euros in frequency usage rights at the 2019 auction, and expansion expenses are estimated in the billions. Delivery issues from partner companies initially hampered 1&1's expansion progress, for which it provided an explanation.
By the end of 2022, 1&1 aims to activate 1,000 5G sites, but only five have been activated as of now. At the end of September, the count was sixty. 1&1 spokesperson asserts that the pace of network expansion is picking up steadily—the network is growing day by day.
Up until now, 1&1 has only utilized these active sites for its landline replacement product. However, the activation of mobile services is scheduled for December 8. At this point, new customers will be able to connect, while existing 1&1 customers will continue to utilize O2's network until their transition to 1&1's network, expected by the end of 2025.
Consumer advocates are eager for the arrival of the fourth German mobile network, believing it will foster more competition, spark additional options, and potentially result in more affordable internet plans for German citizens.
- The expanded roaming agreement allows 1&1 customers to leverage O2's 5G network in regions still lacking 1&1's own infrastructure, potentially enhancing their overall mobile experience.
- The arrival of the fourth German mobile network, powered by 1&1, paired with intensified competition, could potentially result in more affordable internet plans for German citizens.
Enrichment Data:
- The expanded roaming agreement between 1&1 and O2 does not directly impact 1&1's 5G network coverage in Germany. Instead, it likely enhances overall mobile experience for 1&1 customers by providing better coverage and service integration, particularly in regions where 1&1's 5G infrastructure is still expanding.
a. The agreement allows 1&1 customers to use O2's 5G network, enhanced coverage, in regions where 1&1's own network is not available. b. The integration ensures seamless service delivery and maintenance, even in regions with limited 1&1 coverage outside urban areas. c. The expanded roaming agreement enhances the overall mobile experiences for 1&1's customers by providing a more comprehensive coverage.
