Mobile operator 1&1 gets “national roaming” from competitor Vodafone

The mobile phone provider Vodafone is surprisingly looking to close ranks with its rival 1&1 in order to get more money into the till. According to the dpa report, both companies announced on Wednesday that they had agreed on a national roaming partnership. This means that by October 2024 at the latest, 1&1 customers will be connected to the Vodafone network in places where their actual contractual partner does not have their own masts. Vodafone gets rental income for this. So far, 1&1 has such a contract with the competitor Telefónica Deutschland (O2), but this only applies to 4G. Vodafone, on the other hand, also includes 5G and thus the latest mobile communications standard.

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1&1 is currently building its own cell phone network, but is only making slow progress. When asked why things are progressing so slowly, 1&1 and Vodafone are at loggerheads: The newcomer accuses Vodafone of influencing the infrastructure operator Vantage Towers and slowing down the construction of hundreds of mobile phone masts and roof locations for 1&1. Together with investors, Vodafone holds the majority in Vantage Towers. The British company denies the allegations. In June, the Federal Cartel Office initiated abuse proceedings on the matter.

Vodafone needs extra revenue

Vodafone is under pressure, the company recently lost market share. The company wants to get back on track with a savings program including staff cuts. The cooperation with 1&1 now brings urgently needed extra sales. The partnership runs for a maximum of 18 years. Vodafone Germany boss Philippe Rogge thinks that both sides would benefit in the long term. “1&1 also gets access to 5G, and the attractive conditions of this partnership help us as Vodafone to make even better use of our networks and to further improve them for our customers,” said Rogge.

After the partnership was announced, the stock price of 1&1 rose sharply, while Vodafone increased only moderately. The price of Telefónica Germany, on the other hand, collapsed – in the long term this company will have to forego income that it has received or been promised from 1&1 as a still tenant.

Updated 08/02/2023 6:26 p.m

In a statement, Telefónica Deutschland refers to the current contract with 1&1, which “ensures revenue streams” until June 30, 2025. After that, the company can use free capacities for other partners or its own customers. Telefónica Deutschland has “achieved strong operational and financial momentum” in the past few quarters and wants to “continue this growth course”. The company confirmed its guidance for fiscal 2023.

(sigh)

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