Munich, 30 December 2019

Prolongation of the terms of the MBA MVNO contract for 5 years

As expected, 1&1 Drillisch today exercised the contractually agreed extension option for the capacity-based MBA MVNO contract with Telefónica Deutschland. The contracts thus prolongs until 30 June 2025. By extending the contract, 1&1 Drillisch will to purchase a minimum of 20% of the Telefónica Deutschland network capacity for another five years starting 1 July 2020; with the option for another up to 10%.

The prolongation complies with the remedies agreed with the European Commission in 2014 for the integration of Telefónica Deutschland and E-Plus. The commercial terms of the five-year extension period follow the rules of the existing MBA MVNO contract. Telefónica Deutschland is thus securing relevant revenue streams from the partnership with 1&1 Drillisch for the future.

The prolongation of the MBA MVNO contract is independent of the so-called MNO remedy, which allows 1&1 Drillisch to convert the use of the Telefónica Deutschland network as a MBA MVNO into a national roaming agreement at unchanged commercial terms. In the context of the MNO remedy, the two companies already signed a frequency lease agreement on 18 December, which is still subject to approval by the Federal Network Agency. Both companies have agreed confidentiality concerning the status of further talks.

We reiterate our full-year 2019 guidance as well as our mid-term targets.

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]