1&1 Drillisch AG: Final expert opinion considers price increase claimed by Telefónica in December 2018 in the reviewed period to be unjustified

Maintal, 17 December 2020. Today, 1&1 Drillisch has received the final expert opinion in the proceedings to review the price increase implemented by Telefónica in December 2018 with reference to the 2015 frequency auction.

The expert confirms the result and the calculation method of his draft expert opinion of 8 October 2020. The price increase claimed by Telefónica in December 2018 is fully unjustified for the reviewed period (2016 to 2020) and does not result in a payment obligation of 1&1 Drillisch. No further expert arbitration proceedings initiated by Telefónica are pending.

Conversely, 1&1 Drillisch still demands substantial reductions of the advance service prices under the MBA MVNO agreement with retroactive effect from Telefónica in the price adjustment proceedings 1, 2, 5 and 6. These price adjustment proceedings can only result in an improvement of the purchasing conditions of 1&1 Drillisch, but cannot establish payment obligations of 1&1 Drillisch towards Telefónica.

Maintal, 17 December 2020

1&1 Drillisch AG
The Management Board

Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 1&1 Drillisch AG management. Various risks, uncertainties and other factors, both known and unknown, can cause actual developments, especially in the results, financial position, and the business of our Company, to deviate substantially from the projections about the future as they are shown here. The Company does not undertake any obligation to update such future-oriented statements and to adapt them to future events or developments.