Deutsche Telekom loses in Court: 1&1 builds Europe's most advanced 5G network

Montabaur, 10 March 2023. The Regional Court of Koblenz today ruled in favor of 1&1 on key points in proceedings brought by Deutsche Telekom against 1&1 and dismissed Deutsche Telekom's claims in this respect.

Immediately after the launch of the 1&1 mobile network based on the innovative Open RAN technology, Deutsche Telekom initiated legal proceedings against 1&1, the verdict of which was announced today. According to the ruling, 1&1 must slightly clarify details on network coverage in advertising (e.g., by references in footnotes). However, Deutsche Telekom failed in its attempt to have the marketing of the first 5G product implemented on the 1&1 network banned. Nor did the court follow Telekom's motion to deny 1&1 the right to build Europe's most advanced 5G network. 1&1's detailed and well-documented presentation that the company is building Europe's most modern mobile communications network based on the innovative Open RAN technology was not countered by Telekom with any arguments that could convince the court.

"In December 2022, we successfully launched Europe's first Open RAN. A technological masterpiece that shows how innovative cloud-based mobile networks can be today," said Ralph Dommermuth, CEO of 1&1 AG. The new Open RAN technology enables any combination of components from different manufacturers through open, standardized interfaces.1&1 is the only mobile network operator in Germany that does not use HUAWEI technology and does not use Chinese equipment suppliers in any other way.

Deutsche Telekom's attempt to have the market entry of 1&1 prohibited by the courts is one of many efforts by the established mobile network operators to prevent the launch of a competitive fourth mobile network and to protect their oligopoly.

1&1 remains firmly committed to establishing a fourth, exceptionally innovative mobile communications network in Germany.

Background

Germany is the only major EU country with only three mobile networks. In order to maintain this status, Deutsche Telekom, Vodafone and Telefónica already attempted to legally prevent the auction from being held before the 5G frequency allocation in 2019, which was intended, among other things, to pave the way for a competitive fourth mobile network operator, by filing emergency court applications.

As part of the frequency allocation process, the Federal Network Agency had provided for a negotiation requirement to grant national roaming in order to enable the customers of a new entrant to enjoy nationwide network coverage even while its network is being built up. The use of national roaming for network rollout is standard internationally and was also granted by Deutsche Telekom to Telefónica/O2, for example, for 11 years. However, the negotiation requirement with 1&1 stipulated by the Federal Network Agency was undermined by the three incumbent network operators with inadequate and severely delayed offers. As a result, 1&1 had to appeal to the BNetzA as an arbitrator. Intervention by the Federal Network Agency only came to an end when the EU Commission obliged Telefónica to improve its offer after more than two years of negotiations on the basis of a parallel merger condition.

The strategy of obstruction continues with the shared use of mobile sites provided by tower companies. In this context, 1&1 was recently forced to have the Federal Cartel Office investigate obstruction on the part of Vodafone.

At the same time, the established mobile network operators Deutsche Telekom, Vodafone and Telefónica are lobbying unanimously to withhold essential frequency spectrum from 1&1 in the upcoming frequency allocation.

The decision of the Regional Court of Koblenz was issued under file number 4 HK O 1/23 and is not yet final..

About 1&1

1&1 AG is a listed telecommunications provider domiciled in Montabaur. The Company is a member of the United Internet AG corporate group. 1&1 offers its customers a comprehensive portfolio of mobile and broadband access. Moreover, other portfolio components are attractively bundled into mobile and fixed network products and added-value applications such as home networking, online storage, video on demand, smart home solutions or IPTV. While the 1&1 brand addresses value and premium segments, the Group’s discount brands appeal to price-conscious target groups.

Following the successful participation in the 5G frequency auction, 1&1 as the fourth German network operator will establish the first European-wide fully virtualized mobile network on the basis of the innovative OpenRAN technology.

Press Contact 1&1
Robin Schmidt, Head of Public Relations
Mail: [email protected]