Telecommunications - 1&1 launches the fourth German mobile network in mini format
Seven years after the end of E-Plus, a fourth cell phone network is back in operation in Germany. Telecommunications group 1&1 plans to officially launch its mobile services at a ceremony today (Friday) in Montabaur, Rhineland-Palatinate, after which new customers will be able to access the still very small network. At the end of September, there were only around 60 antenna sites; by the beginning of 2024, there should be 200. By comparison, O2 has more than 28,000 antenna sites nationwide. Where 1&1 does not offer its own connections, new customers will be connected to the O2 network. Consumer advocates expect the new network to offer a better service on the market.
Until now, Germany has had cell phone networks from Telekom, Vodafone and Telefónica Deutschland with its O2 brand. There are also so-called virtual network operators that use the capacity of the established providers for their mobile communications business and pay rent for it.
The United Internet subsidiary 1&1 was previously such a virtual network operator, with its mobile customers mainly connected to the O2 network. In 2019, however, CEO Ralph Dommermuth decided to stand on his own two feet and take part in a frequency auction. He purchased usage rights for 1.1 billion euros in order to be able to operate on certain frequencies himself.
1&1's network expansion got off to a late start and the company is facing a fine due to a significant delay. Germany had four mobile networks for a long time, but O2 took over its competitor E-Plus in 2014. The networks were gradually merged until 2016, after which there were only three mobile networks, but now there are four again.
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- The new mobile network, initiated by telecommunications group 1&1, is set to challenge the existing players in Germany, including Telekom, Vodafone, and O2.
- 1&1's cell phone network, operating on a smaller scale for now, plans to expand to 200 antenna sites by 2024, in contrast to O2's nationwide network with over 28,000 antenna sites.
- In the past, 1&1 operated as a virtual network operator, primarily relying on the O2 network for mobile communications services, but in 2019, the company decided to participate in a frequency auction and purchased usage rights for 1.1 billion euros.
- Located in Montabaur, Rhineland-Palatinate, the fourth German mobile network operated by 1&1 will officially launch today, promising to potentially improve the market competition in telecommunications.
- Deutsche Telekom, known for its Telekom brand, and Telefónica Deutschland with its O2 brand, are currently the other two major cell phone network providers in Germany, but 1&1's entry might change the landscape of mobile telecommunications.
- Despite a delay and facing a fine, 1&1 is bringing back the concept of four mobile networks in Germany, following the absorption of E-Plus by O2 in 2014 and the subsequent merging of networks until 2016.
Source: www.stern.de
