6,294
edits
1&1:5G Infrastracture: Difference between revisions
→1&1 5G rationale
| Line 1: | Line 1: | ||
=== 1&1 5G rationale === | === 1&1 5G rationale === | ||
In January 2019, 1&1 announced that it | In January 2019, 1&1 announced that it will participate in 5G licenses auction-with the intention of becoming German's fourt MNO. The decision will mark a change in business model, which has been relying on a wholesale agreement, called MBA-MVNO. This wholesale agreement came into effect as a result of EU antitrust remedy following E-Plus/Telefonica merger in 2014. The agreement gave 1&1 the right to host its customers on Telefonica network and other networks for a fee. As of September 2019, 1&1 had rented out 20% of Telefonica's hosting capacity. The hosting was mainly for 3G and 4G but had a guaranteed option for 5G products in future. Nevertheless, 1&1 had the option to increase hosting capacity up to 30% until 2030. Additionally, the wholesale agreement had regulatory price protection until 2030. 1&1 also had wholesale agreement with Vodafone for 3G hosting. However, due to better rates in Telefonica's network, 1&1 started migrating its customers from Vodafone network to Telefonica network. | ||
Even though the wholesale agreement requires little capital, carries regulatory price protection and doesn't have a lot of risks, it can lead to margin squeeze in future as the number of users grows. Nevertheless, 1&1 will be subjected to non-discriminatory prices from June 2029. That is why 1&1 had to participate in 5G frequency auction in 2019. 1&1 notes that its own 5G network comes with a lot of advantages which include: | Even though the wholesale agreement requires little capital, carries regulatory price protection and doesn't have a lot of risks, it can lead to margin squeeze in future as the number of users grows. Nevertheless, 1&1 will be subjected to non-discriminatory prices from June 2029. That is why 1&1 had to participate in 5G frequency auction in 2019. 1&1 notes that its own 5G network comes with a lot of advantages which include: | ||