Bad prospects for 1&1: Customers face restrictions

For 1&1, the construction of its own mobile network is not going as smoothly as planned. Uncertainties about frequency allocation still hover over Germany’s fourth network operator. Now the Federal Network Agency is fueling doubts about a new award – 1&1 customers shouldn’t like it.

Bitter for 1&1: Frequency extension for mobile communications is becoming more likely

The fight for Germany’s mobile networks continues: For 1&1, as a newcomer among network operators, things could get off to a better start: The Federal Network Agency is thinking about giving in to the pressure of the competition and to postpone reallocation of mobile radio frequencies.

The 800 MHz band would thus remain closed to 1&1 for a long time: Specifically, Jochen Homann, President of the Federal Network Agency, is considering retaining the existing frequency allocations. He could imagine that Mobile radio frequencies “to be extended at short notice and conditionally” (Source: Finanzen.net). A new award procedure – no final decision has yet been made on the mode – would only take place afterwards.

How long a short-term extension would be is unclear. According to the current plan, the frequencies will be reassigned in 2023 or 2024. In particular, the range around 800 MHz should go under the hammer. Because the radio waves in this area are particularly long-distance, they are needed for network coverage in rural areas. So far, Telekom, Vodafone and o2 have shared the areas that have become free.

1&1 customers are still on the safe side

However, there are only three of these and with 1&1 there is now a fourth bidder – one could also speak of real competition. At least there is no immediate danger for 1&1 customers – such as loss of quality – your provider should go away empty-handed. So far, they have been surfing and phoning through contracts in the networks of other providers.

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But if 1&1 has to do without new frequencies in the long term, things will look different. According to a spokeswoman, the area frequencies are considered to be “mandatory”. In order to maintain the network quality, you would otherwise have to rely on the competition for longer than planned – and they know the situation at 1&1. Rising prices should then be expected.

In addition, as the new network operator, 1&1 has to fulfill expansion requirements. It is at least questionable that these can be achieved without shares in the 800 MHz range. The Advisory Board of the Federal Network Agency is currently negotiating new assignments or extensions, but no result is expected.