Mobile operator 1&1 concludes deal with competitor O2

Mobile provider 1&1 strikes deal with rival O2, boosting market presence

In the lead-up to Germany's fourth mobile network debut, telecom giant 1&1 announces a deal with competitor Telefónica Deutschland (O2), aiming to solidify its market position.

Broadening the existing national roaming pact, the agreement now includes 5G broadband technology, the company announced in Montabaur. It also shares the release date for the new mobil network: December 8, marking the date the network will be fully functional, making Germany home to a fifth cell phone network. As of now, only Telekom, Vodafone, and O2 antennas transmit signals. Competition is anticipated to elevate.

In absence of its own antennas, 1&1 customers will be connected to the O2 network. This partnership builds upon an older contract between 1&1 and O2, which only permitted access to O2's 4G network for roaming. Now, 5G technology will be integrated into the agreement, providing a more competitive edge for 1&1. Details regarding the contract's new provisions were not disclosed.

Up to this point, 1&1 has operated as a virtual network operator, renting space on competitors' networks to function within the mobile industry. The enhanced agreement will enable 1&1 to secure 5G roaming with a competitor during the network's launch stage, a vital advantage for the newcomer. In the summer or autumn of 2024, a roaming agreement with Vodafone will commence, providing 1&1 with a stronger position. The partnership with O2 will gradually phase out by this time.

The 2019 frequency auction saw 1&1 secure frequency usage rights worth approximately 1.1 billion euros, along with hefty expansion costs. Late deliveries from partner companies delayed 1&1's expansion plans, which the company attributed to supply chain issues. By the end of 2022, 1&1 aims to activate 1,000 5G sites, although only five have been activated to date.

Consumer advocates anticipate the arrival of the fourth German mobile network to spur increased competition, offer a wider array of choices, and provide better value to internet subscribers.

1. Expanded national roaming agreements now secure 1&1 subscribers 5G connectivity in areas without 1&1-owned antennas, thereby enhancing 1&1's range of mobile services.
2. The partnership between 1&1 and O2 challenges the current market dominance of Telekom, Vodafone, and O2, introducing a fifth cell phone network.
3. By incorporating 5G roaming with O2, 1&1 enhances its ability to court and retain customers, offering competitive advantages in terms of speed and coverage.

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Additional Insights:

• The deal with O2 enables 1&1 to kickstart its 5G roaming capabilities during the initial stages of its mobile network launch, a move crucial for the newcomer in the competitive landscape.
• The collaboration between 1&1 and O2 enhances the operational efficiency and 5G coverage of 1&1's mobile services, positioning the company to improve its market position amid growing competition.
• As part of its national roaming agreement with O2, 1&1 customers will gradually transition to the 1&1 network by the end of 2025, marking an important milestone in 1&1's journey towards self-sustained mobility services.