Munich/Bonn/Dusseldorf, 11 November 2019

Telefónica Deutschland cooperates with Deutsche Telekom and Vodafone in network expansion

Deutsche Telekom, Telefónica Deutschland and Vodafone have agreed to join forces in expanding their networks with the goal to ensure the best possible mobile broadband coverage for customers throughout Germany, especially in rural areas and along roads, railways and rivers. Their coverage has been imposed on the network operators as part of the 2019 frequency auction. The three telecommunications providers plan to build up to 6,000 new mobile sites in a coordinated manner. Telefónica Deutschland thus now signed a respective letter of intent. 1&1 Drillisch is invited to join the cooperation provided the willingness to contribute equally in the rollout plans.

The joint construction of additional radio masts and towers as well as their technical connectivity and use significantly saves time and costs compared to an individual rollout. The companies involved will set up an equal number of new sites, which all partners may use under the same conditions to set up their own antennas and network technology.

After having invested around EUR 6.5 billion altogether in the 2019 frequency auction, the agreed cooperation serves to largely close white spots in sparsely populated regions and along traffic routes in an economically viable way. The coverage requirements imposed by the Federal Network Agency (BNetzA) as part of the 2019 frequency auction require investments in the billions from the telco operators. All three companies still consider these conditions disproportionate and unlawful, which is why they are upholding their ongoing lawsuits. Reality also shows that citizens' initiatives and administrative hurdles often slow down network expansion in those regions where it is most needed.

The coverage of traffic routes has been imposed on the operators as part of the frequency auction rules. The planned agreement will enable network operators to offer their customers a comprehensive a coverage along the transport routes. An even further expansion should be supported by appropriate state subsidies to close individual white spots. The network operators are also prepared to work together within such a framework.

The Federal Cartel Office has been informed about the cooperation plans. Already in the past, BNetzA has made clear that it considers a joint use of infrastructure as essentially sensible. Further details of the cooperation are to be contractually agreed by spring 2020 at the latest. The joint network rollout planning could start soon thereafter.

More information:

Telefónica Deutschland
Investor Relations
Georg-Brauchle-Ring 50
D-80992 München
t +49 (0)89 2442-1010
f +49 (0)89 2442-2000
e [email protected]