1&1:Customer Migration

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Migration Process

• Following the launch of its network in December 2023, 1&1 has to migrate its 12 million+ customers from Telefonica MVNO to its own network before the kick-off of Vodafone national roaming agreement NRA.

• 1&1 said BNetzA gave them two years to complete the migration (2024 and 2025).
• At the end of Q1 2024, 1&1 had migrated 700,000 customers to its own network and they were doing 20-40k migrations per day but was approaching 50k migrations per day. However, a network disruption in Q2 2024 caused by a failure of one of its data centers made them to pause the migration.

Will the disruption in migration process affect its contract with Telefonica?

The disruption in network migration process could mean that some 1&1 customers will still be in the Telefonica network by the time 1&1's contract with Telefonica comes to an end in June 2025. However, this will not lead to any additional financial obligations since the contract provides for a transition period during which renegotiation of the contract will be necessary. "After that, we have a 3-year transition period. And there is no minimum volume during this period or pricing structure there," 1&1 said in its Q2 2023 earnings call.