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๐Ÿ‡ฉ๐Ÿ‡ช Germany /Technology

Mobile Communications: 1&1 mobile network reaches almost every third household

From Die Zeit · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • German telecommunications company 1&1 has expanded its mobile network coverage to reach 29% of households as of late March.
  • This marks a 2% increase from the previous quarter, with antennas primarily located in densely populated urban areas.
  • 1&1 aims to cover at least 50% of households by 2030, according to a state mandate, and reported a 1.1% rise in revenue for the first quarter.

German telecommunications provider 1&1 is steadily advancing its mobile network expansion, announcing that its proprietary antennas now reach nearly a third of households across Germany. As of the end of March, the company reported that its network coverage extended to 29% of German households, a two-percentage-point increase compared to the previous quarter. This progress is crucial as 1&1 is obligated by a state mandate to achieve at least 50% household coverage by 2030.

The company's strategy appears focused on densely populated urban centers, where its antennas are predominantly situated. While household coverage is growing, the actual geographic area covered by 1&1's 5G and 4G networks remains relatively small, standing at 1.9% and 1.8% respectively in December, according to the Federal Network Agency. This indicates a concentrated deployment rather than widespread territorial coverage at this stage.

1&1, the fourth major German mobile network operator after Telekom, Vodafone, and O2, entered the market by acquiring its own radio frequencies in 2019 for โ‚ฌ1.1 billion. Its first mobile antennas were activated in late 2023. Currently, in areas where 1&1 lacks its own infrastructure, customers are connected via Vodafone's network, with 1&1 paying rental fees. The company activated approximately 2,000 antennas by the end of last year and anticipates activating an average of 300 new sites per quarter this year. This pace, however, significantly lags behind competitors like Vodafone (approx. 28,000 antennas), O2 (29,000), and Telekom (over 35,000).

Beyond network expansion, 1&1 also reported positive business figures for the first quarter. Revenue saw a modest increase of 1.1% to approximately โ‚ฌ1.1 billion, while profit surged by nearly two-thirds to โ‚ฌ17.8 million, partly due to depreciation effects. The company maintained a stable customer base of 16.3 million contracts, with over three-quarters being mobile contracts and the remainder for fixed-line internet services. From a German perspective, 1&1's progress is a key development in the competitive landscape of mobile network infrastructure. The company's investment in its own network is a strategic move to reduce reliance on partners like Vodafone and establish a stronger independent market position. While the current coverage figures might seem modest compared to established players, the trajectory and the commitment to the 2030 mandate are closely watched by industry analysts and consumers alike, especially concerning the future of mobile connectivity and competition within Germany.

The 1&1 company logo on the roof of the company headquarters in Montabaur.

· Thomas Frey/dpaCaption for an image related to 1&1's mobile network expansion.
About this summary

Originally published by Die Zeit in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.