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1&1:5G Infrastracture: Difference between revisions
→1&1 5G rationale
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* More revenue and higher profits. | * More revenue and higher profits. | ||
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>. | 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>. 1&1 estimates that in needs12,000-13,000 antenna sites to achieve 50% coverage<ref>https://edge.media-server.com/mmc/go/webcast_1und1_quarterly_statement_Q32022 (min 40)</ref>. However, Warbug research indicates that for 1&1 to be able to compete favorably with other MNOs and even enter whole sale agreements to host other MNO's users, it should have 26,821 antenna sites in the 50% coverage obligation<ref>https://imagepool.1und1.ag/v2/download/analysen/2019-01-18-Drillisch-Warburg.pdf (page 8)</ref>. Also, despite getting those 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 2024 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/1und120220512/en (Min 38-45)</ref>. However, there is a growing likelihood that the 800 MHz duration will be extended to 2033 while the 900 Mhz expiry date will be brought forward to 2025 from 2033. This means that the 900 MHz will be auctioned in 2024 instead of the 800 MHz<ref>https://www.telcotitans.com/deutsche-telekomwatch/dts-h%C3%B6ttges-to-fight-regulator-on-spectrum-auction-proposals/5732.article#:~:text=In%20September%2C%20the%20BNetzA%20proposed,to%20the%20end%20of%202025</ref>. But 1&1 said during Q2 2022 earnings call that it is open to any of the 700 MHz, 800 MHz or 900 MHzt<ref>https://www.webcast-eqs.com/register/1und120220804/en (min 45-51)</ref>. | ||
One of the important assets in 1&1's 5G construction is 1&1 Versatel, which is 100% owned by United Internet.1&1 Versatel owns one of the largest fibre networks in Germany. The network spans over 47,013 km and is available in 250 German cities, including 19 of the 25 largest cities. 1&1 will leverage this network as 5G backhaul<ref>https://www.united-internet.de/fileadmin/pdf-xml/praesentationen/2019/2019-06-27-5G_Rationale.pdf (page 11)</ref>. | One of the important assets in 1&1's 5G construction is 1&1 Versatel, which is 100% owned by United Internet.1&1 Versatel owns one of the largest fibre networks in Germany. The network spans over 47,013 km and is available in 250 German cities, including 19 of the 25 largest cities. 1&1 will leverage this network as 5G backhaul<ref>https://www.united-internet.de/fileadmin/pdf-xml/praesentationen/2019/2019-06-27-5G_Rationale.pdf (page 11)</ref>. | ||
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# HSBC points out that future low-band spectrums (800MHz,1,800MHz and 2,600MHz licences to be renewed in 2024) may come with higher coverage obligations as well as minimum speed and latency. This may not be good for 1&1, especially if its network will not have picked up in 2024<ref>http://www.d-long.com/eWebEditor/uploadfile/2019101622405834124458.pdf (page 63)</ref>. | # HSBC points out that future low-band spectrums (800MHz,1,800MHz and 2,600MHz licences to be renewed in 2024) may come with higher coverage obligations as well as minimum speed and latency. This may not be good for 1&1, especially if its network will not have picked up in 2024<ref>http://www.d-long.com/eWebEditor/uploadfile/2019101622405834124458.pdf (page 63)</ref>. | ||
# 1&1 risks being penalised for failing to meet its 2022 network obligations. In the worst case scenario, its license might be suspended<ref>https://winfuture.de/news,134151.html</ref>. | # 1&1 risks being penalised for failing to meet its 2022 network obligations. In the worst case scenario, its license might be suspended<ref>https://winfuture.de/news,134151.html</ref>. | ||
# The antenna sites that 1&1 will have at its disposal by 2030 may not be enough to compete favorably with other MNOs. | |||
== 1&1 5G Partners == | == 1&1 5G Partners == | ||