1&1 Mobilfunk will soon cease to be a service provider

1&1 Mobilfunk will soon cease to be a service provider

The Federal Network Agency takes into account the fourth German mobile network operator and puts little pressure on it: 1&1 Group will soon have to quit its business as a service provider, according to a report published by the agency on Friday. It refers to the mobile communications arm of 1&1, which provides access to O₂ and Vodafone’s networks under its own brand as a reseller (mobile virtual network operator, MVNO).

According to the Federal Network Agency, “sales as a service provider must be closed by the end of 2023 at the latest” and business activities as a service provider can only continue until the end of 2025. From this it can be concluded: 1&1 can only conclude new contracts as a reseller by the end of 2023 and previous contracts for the use of other network operators’ infrastructures can last until 2025.

The contracts that 1&1 wants to offer as a network operator soon remain unaffected. In 2019, the company became the fourth German company to buy frequency usage rights for mobile communications in a frequency auction. In principle, a mobile network operator cannot even be a service provider that resells the network capabilities of other operators to its customers. But the 1&1 group has agency still 2018 Temporarily granted a dual status, but initially left the term open. The group would now have to leave it after the agency heard multiple times over 1&1 and the contestants to eliminate the dual role.

“With the decision to end 1&1’s dual status, this network operator’s competitive independence has been established. It fosters competition,” said Claus Müller, president of the Federal Network Agency. However, Phases 1 and 1 also put pressure on its own 5G infrastructure to be commissioned at the earliest.

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1&1 gave in Annual report from the end of 2021 “More than 11.2 million mobile phone subscribers”. It is easy to imagine that the company would like to save this customer base on its own 5G network, which is currently under construction. It is not clear how this might work in detail.

First internal test runs for promising 5G network sound. But for a predictable customer transfer, the group will probably have to move on after missing its network expansion targets for 2022. 1&1 originally wanted to achieve the interim goal of 1000 5G antenna sites by the end of 2022. It is now expected to be operational by the summer of 2023.

Then 1&1 also wants to supply the first customers through its own 5G mobile network. Where they have shortcomings in their own coverage, Telefónica should help through national roaming. The long-term goal is to supply 50 percent of households by the end of 2030.

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