The long-awaited fourth mobile network provider in Germany is about to launch, after the expansion of the network was significantly delayed. At a celebration in Montabaur on Friday afternoon, the telecommunications provider 1&1, belonging to the United Internet Group, will officially introduce its mobile services. According to CEO Ralph Dommermuth, the network is fully functional and will bring Germany to the forefront in the field of 5G technology.
The network will initially start in mini format, with only 60 antenna-enabled locations by the end of September and an additional 200 to be activated in early 2024. Cities like Montabaur, Düsseldorf, and Frankfurt will be the first to benefit from the new network coverage. In comparison, O2 has more than 28,000 locations, so 1&1 still has a long way to go. The existing mobile networks in Germany are operated by Deutsche Telekom, Vodafone Group, and Telefónica Deutschland (O2).
Translate the following heading to English: "1&1 Moves from Virtual Network Operator to Building Its Own Network"
There will be no changes for existing 1&1 customers for the time being, as the new network will only be introduced gradually by the end of 2025. Additionally, in the summer or autumn of 2024, a roaming agreement with Vodafone will be implemented to provide connections outside of 1&1 locations. In other words, where 1&1 is currently in place, there is a lot of O2 and in the future, a lot of Vodafone as well.
1&1 is banking on an open radio access network (Open Ran), which is also considered promising by the competition. In contrast to the closed systems used so far by the industry, which are tied to specific manufacturers, Open Ran has open standards and interfaces. This allows components from different manufacturers to be used. Additionally, the innovative network promises very low latency.
Federal Minister of Transport Volker Wissing (FDP) welcomes the launch of the 1&1 network and emphasizes the benefits for consumers and businesses. Consumer protection advocates also express their support, as the entry of a fourth provider can lead to more choices and higher network quality. Comparison portal expert Jens-Uwe Theumer sees the fourth operator as an enrichment and expects stronger dynamics and choices for consumers.
The number of mobile network operators in Germany returns to four with the merger of O2 and E-Plus in 2014. The market is expected to become more competitive, which could lead to a better selection and lower prices for consumers. Currently, Germany is considered one of the most expensive providers of mobile internet in Europe, with an average price of 2.50 euros per gigabyte.
The network expansion has not been an easy task for 1&1. According to a government regulation, 1000 5G sites should have been operational by the end of 2022, but in reality, there were only five. The company cited delivery difficulties from expansion partners as the reason. Due to this delay, a fine from the Federal Network Agency is now threatened. One year ago, 1&1 launched a replacement service for fixed network products near its sites, allowing households in the vicinity to have mobile phone reception and thus no longer needing fixed network contracts.
This service, however, only worked for households near the antennas and not for passersby. The original launch of the mobile network was planned for the summer quarter of 2023 but had to be postponed. Now the time has finally come. After the challenges, the company plans to accelerate expansion next year. According to regulations from the Federal Network Agency, 1&1 antennas must reach at least 25 percent of German households by the end of 2025 and at least 50 percent by the end of 2030. The remaining households will be connected via the roaming network.
An important question remains unanswered: Will there be another mobile auction next year? For an optimal nationwide network, additional frequency blocks are required, which 1&1 intends to acquire. According to plans from the Federal Network Agency, however, there will be no auction, and instead, existing usage rights will be extended.
In this case, 1&1 would be left out, while the established providers Telekom, Vodafone, and O2 would be strengthened. In Montabaur, these plans are viewed with skepticism. The stock of 1&1 temporarily lost 0.97 percent to 16.42 euros in XETRA trading.
