1&1:5G Infrastracture: Difference between revisions

1&1's bid in the 5G auction was successful. It was able to get 5x10 MHz in 3.6 GHz frequencies. This spectrum will be available from January 2021 and 1&1 paid 735 million euros for it in September 2019. Additionally, 1&1 won itself 2x10 MHz1 in 2 GHz frequencies. Usage for this spectrum will start from January 2026 and 1&1 will pay 335 million euros in June 2024 for it. However, as part of the auction requirements, 1&1 will have to fulfill certain obligations. It had to have at least 1,000 5G active antenna sites by 2022. Additionally, it must achieve 25% household coverage by 2025 and up to 50% household coverage by the end of 2024<ref>https://www.united-internet.de/fileadmin/pdf-xml/praesentationen/2019/2019-06-27-5G_Rationale.pdf (page 6)</ref>. Despite getting these frequencies, it is critical that 1&1 gets the low-band frequency (800 Mhz) to be auctioned in 2024 in order to be able to offer seemless network experience to its users. This is because a network built on high -band frequencies is incapable of penetrating through walls<ref>http://www.d-long.com/eWebEditor/uploadfile/2019101622405834124458.pdf (page 64)</ref>. If 1&1 is unsuccessfull in the 2025 auction, it will have to lease it from Telefonica. However, as noted by its CEO Ralph Dommermuth during Q1 2022 earnings call, this woud be expensive. It will also reduce their competitive position<ref>https://www.webcast-eqs.com/register/1und120220804/en (Min 38-45)</ref>.