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Cellular provider cannot continue as before

1&1 will offer the fourth mobile network in Germany, the necessary construction is underway. But this means that there are also changes that will affect practically all of 1&1’s mobile customers. The provider from Montabaur will soon no longer be able to continue as before.

1&1 must act: Federal Network Agency issues an ultimatum

1&1 is in the hot phase of setting up its own mobile network. The first locations are being tested, but the starting shot is still a long way off. However, the new competitor from Telekom, Vodafone and Telefónica/o2 cannot hold out for long. The Federal Network Agency (BNetzA) has now indirectly clarified this.

So far, 1&1 has been a so-called service provider in the networks of the competition from Vodafone and Telefónica/o2, similar to the many cheap providers who do not operate their own network. There are corresponding usage agreements with the network operators for this. But the requirements are clear: either service provider or network operator. 1&1 initially had an unlimited transitional status for the period of development since 2018, which enabled the company to do both.

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The Federal Network Agency will soon put an end to this: by the end of 2023, 1&1 will have to stop selling contracts in third-party networks. Subsequently, the business activity as a service provider must be terminated by the end of 2025 (source: hot). That means: 1&1 may only sell contracts that do not transmit in their own network by the end of 2023. This is followed by a transitional phase of two years, during which the existing contracts also have to be migrated to 1&1’s own network.

This is probably based on calculations on the part of the BNetzA: “With the decision on when to end the double position of 1&1, the competitive independence of this network operator will be established. This encourages competition.” explains Klaus Müller, President of the BNetzA.

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On the one hand correct, on the other hand you also build up gentle pressure for 1&1, that expand the network quickly and put into operation. The BNetzA had previously expressed dissatisfaction with the progress made in setting up its own network. 1&1 had to accept the plan of 1,000 cell phone sites by the end of 2022. Instead, it should now only be ready in mid-2023.

No restrictions provided for 1&1 customers

The step should not restrict mobile communications customers from 1&1: Coverage will continue to be guaranteed. 1&1 will use national roaming for this can access the o2 network where their own has not yet been expanded. The landline offers from 1&1 are not affected by the steps.

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