A post was merged into an existing topic: 1&1 Open RAN Integration Challenges and Strategic Benefits
I=7, October 6
1&1 confident it will achieve 25% coverage at the end of the year but concerned about the ongoing negotiations with the incumbents
- 1&1 recently contacted the head of Federal Network Agency (BNetzA) detailing their network progress.
- 1&1 said in the letter that their network expansion is progressing well and they are confident that they will reach 25% of German households by the end of 2025.
- 1&1 also said that it has migrated more than 98% of its customers to its own network.
- According to Tagesspiegel Background, while 1&1 now operates sufficient number of 5G base stations, it has not met the minimum requirement of base stations in each federal state but BNetzA granted them until the end of 2025 to achieve this goal.
- 1&1 is concerned about the ongoing negotiations with the incumbents regarding the shared use of low-band spectrum, saying negotiations are progressing “very slowly”.
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A post was merged into an existing topic: Telecommunications Industry
I=8
1&1 will not face any fine for not meeting the 2022 antenna site obligation, Federal Network Agency announced
- The Federal Network Agency announced that 1&1 will not face any fine for not meeting the 2022 antenna site obligation.
- At the end of 2022, 1&1 had to have constructed 1,000 active antenna sites but did not build any and a fine of EUR 50,000 was on the table (Notion-Fines for not meeting antenna sites target).
- Following the Federal Administrative Court ruling, 1&1 investor relations already said the fines as well as the antenna sites obligations will likely be voided.
https://www.heise.de/news/Netzagentur-gibt-Bussgeldverfahren-gegen-Mobilfunker-1-1-auf-11093675.html
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I=9
Vodafone files complaint against Federal Cartel Office, accusing it of favoring 1&1 in its dispute of antenna sites rollout
- Vodafone filed a preventive legal protection with the Higher Regional Court of Düsseldorf, aiming to stop the Federal Cartel Office from making a decision in Vantage Towers-1&1 dispute.
- Vodafone speculates that Federal Cartel Office’s head, Andreas Mundt, wants to use the proceedings to help 1&1 achieve faster rollout of its network.
- It accuses the Federal Cartel Office of allowing 1&1 to control the proceedings, a claim that both 1&1 and the Federal Cartel Office deny.
- The Federal Cartel Office pointed out that the proceedings are “at an advanced stage,” adding that “whether a decision will be reached is currently still open.”
- In April 2025, the Federal Cartel Office said preliminary findings indicate that Vodafone and its subsidiary, Vantage Towers are liable for the failure by 1&1 to meet its antenna obligations at the end of 2022 and added that it is considering ordering the provision of the relevant sites within three years, with additional measures to follow in mid-2025.
- 1&1 shares up 3.8% while United Internet shares are up 2.8%.
Preliminary assessment
Vodafone’s application for preventive legal protection suggests it expects, or at least seriously fears, that the Federal Cartel Office will issue a decision favorable to 1&1 in the abuse proceedings. Such a decision would likely oblige Vantage Towers to grant 1&1 faster or more extensive access to antenna sites, potentially constraining Vodafone’s own rollout strategy.
Commercially, Vodafone also benefits from a slower 1&1 network expansion because it prolongs the economic value of the national roaming agreement. Hence, Vodafone could be indirectly trying to slow 1&1’s progress.
The step nonetheless calls into question the state of the 1&1–Vodafone relationship, especially after 1&1’s reported increase in roaming costs and emerging reports that Telefónica may seek to rekindle its cooperation with 1&1. Telefónica could see an opportunity if regulatory pressure and legal disputes further strain the 1&1–Vodafone partnership.
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Vodafone’s application for preventive legal protection has been described as unusual since the Higher Regional Court of Düsseldorf (OLG Düsseldorf) normally sets a high bar for granting it (Notion-Case against Vantage Towers).
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According to Tagesspiegel Background, complaints against the Federal Cartel Office (FCO) are not relevant under anti-trust law.
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Tagesspiegel Background noted that Vodafone relied on a recent Lufthansa/Condor ruling, in which the OLG Düsseldorf ruled against the FCO after expressing concerns about possible “bias” at the authority.
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In past similar disputes, the ruling came after several months (Notion-Case against Vantage Towers).
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The Federal Cartel Office has not yet issued a ruling; therefore, relying on the Lufthansa/Condor decision as a precedent may be inappropriate.
Assessment
Based on these findings, it still appears that Vodafone’s goal is to delay 1&1’s network rollout. Preventive legal protection is unusual, and Vodafone could have simply challenged the FCO decision after publication, so seeking to block it upfront looks tactical. Even if the OLG is unlikely to side with Vodafone on substance—especially given 1&1’s weaker competitive position—the proceedings could still drag on for up to three years, slowing 1&1’s build-out. I assign a 30% chance that the OLG grants preventive protection, but less than a 20% chance that Vodafone ultimately wins the case.
I=8
1&1 said it has achieved coverage of 25% of German households, implying they now have around 2,000 active antenna sites
- 1&1 didn’t state the number of active antenna sites but in the last earnings call, they said they estimate 25% coverage would need 2,000 active antenna sites.
- 1&1 had 1,500 active antenna sites at the end of Q3 2025, which means they have added 500 so far which is at the upper limit of my estimate (Notion-1&1 antenna sites)
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I=8
1&1 wants to sue BNetzA for not auctioning frequencies, activating 5 masts everyday and not planning on being acquired by Telefonica
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CEO Ralph Dommermuth said they are planning to sue BNetzA for not auctioning frequencies.
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He pointed out that network expansion is going on well and that they are activating 5 masts everyday.
“We are exceeding the requirements of the Federal Network Agency. At the turn of the year, we had reached over 27 percent of households – the target was 25 percent. Network expansion is progressing rapidly; we are putting five new masts into operation every day.”
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He said they are not considering selling 1&1 to Telefonica but could see themselves buying Telefonica.
“I’m not considering that. My team and I have faced a difficult journey in recent years, dealing with regulatory proceedings, lawsuits, antitrust violations by our competitors, and setbacks in network expansion. We decided to build the most modern network in Europe. And we’re going to see it through.”
“If Telefónica wants to withdraw, we’ll certainly look into it. But to my knowledge, such a move isn’t currently planned.”
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He said the promotional offer of ten euros for unlimited data (seen last year) is no longer valid but in the discount segment it’s common to have 20 GB for 4.99 euros.
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Dommermuth considers the current sovereignty debate deceptive since the balance of power continues to shift to the U.S..
“Anyone who believes European providers can replace the US players is deluding themselves,” he said. " Ionos offers applications that are well-suited to many requirements, but it doesn’t have the same breadth of offerings as Amazon & Co," he added.
Assessment
The fact that they want to sue BNetzA signals that negotiations with incumbents is not going well. 5 active sites per day implies 110 actives per month and 330 per quarter (assuming 22 working days per month). In my opinion, addition of 1,300 active sites per year is not that bad, especially since they are high-performing masts.
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I=10
Telefónica is in talks with United Internet to acquire 1&1 for EUR 4.5-5 billion, EL ESPAÑOL reported
- Formal negotiations have already begun, with the goal of finalizing the details and gaining clarity on the transaction before the end of the first half of the year, EL ESPAÑOL reported citing people familiar with the matter.
- 1&1 currently trades at around €4 billion but analysts expect a premium of 20% from the sale.
- Telefonica is said to be financially capable of buying 1&1 given its free cash flow of more than €2 billion, ability to raise additional capital from its major shareholders.
- The major headwind to this transaction is regulatory but Telefonica Chariman Marc Murtra recently said that he see signs of a better predisposition from European authorities to facilitate mergers.
- United Internet and 1&1 shares are up more than 10% following the report.
Assessment
United Internet CEO Ralph Dommermuth recently said that they are not planning to sell 1&1 but could consider acquiring Telefonica. I wonder where the truth lies or maybe United Internet is saying so in order to get a good offer.
Even if the negotiations go through, navigating regulatory headwind will be a major challenge. The outcome of planned acquisition of Altice Group in France by a consortium of Orange, Bouygues and Iliad (Free), taking the number of operators to three will provide clarity on what the EU anti-competition authority would do.
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I=6
1&1 currently has 27% coverage of German households, aims to achieve 40% by the end of 2027 with high-bandwidth low band frequencies or 30% without low-band frequencies
Assessment
At the end of 2025, 1&1 had around 2,000 active base stations (Q3 2025: 1,500), representing 25% coverage. Therefore, 27% coverage would mean that 1&1 has added only around 160 active base stations in 2026.
I=10
United Internet and 1&1 shares shed more than 6% on report that Telefonica is freezing plans for acquisition of 1&1
- Telefonica freezes plans for acquisition of 1&1 until the German operator resolves its OPEN RAN problems, OKDIARIO reported citing internal sources.
- United Internet shares shed as high as 10% while 1&1 shares lost 7.6% immediately following the report.
- The sources said while Telefonica’s strategic interest in 1&1 remains unchanged, any corporate action will depend on 1&1 successfully completing the most critical phase of its network development such as regulatory deadlines.
Assessment
My first assessment is that Telefonica is using delaying tactics with the hope of getting a good offer price. This is because there are no longer regulatory deadlines following the court ruling which voided the 2019 expansion targets. Also, according to 1&1, it has met its 2025 coverage obligations since it’s using more powerful antennas. The only major headwind currently facing 1&1 is the lack of low-band frequencies, but Telefonica already has them.
Additionally, Telefonica is waiting for clarity on merger guidelines, whose real-world impact is not expected until at least early 2027 (Q4 2025 United Internet Earnings (Notion)). This gives them some time to drag their feet.
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Very interesting. It’s the first time i hear about Open Ran & technological leadership being a major reason why Telefonica is interested in buying 1&1. That’s a strong positive signal for 1&1 Open Ran network as it confirms it’s architecture choices & implementation quality and our previous assessment on Open Ran.
The other reasons named for the acquisition like major synergies from combining infrastructure, licenses, costumer base + the fact that consolidation might alleviate pricing pressures are also very strong.
Without having done further research i also get the feeling that some sort of high stakes poker regarding a potential consolidation in the german telco market is currently ongoing, but i remain unsure how high the likelihood of a deal is.
Can you remind me and link which court ruling you are talking about?
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Cologne Administrative Court ruled last year that the 2018 5G decision regarding the allocation conditions and auction rules were unlawful and ordered the Federal Network Agency to issue a new decision. BNetzA lost an appeal against it and announced that 1&1 will not face any fines for not meeting the 2022 antenna site obligation.