1&1 aims to launch 5G services in Germany in Q3 2023
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Loading... - Blanco Rafael
- 07 Jun 2023
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German telecommunications operator 1&1 has announced its plans to introduce 5G services for smartphone users in the third quarter of 2023. The company expects to provide nationwide coverage from the start through a national roaming agreement with rival operator Telefónica, as stated in its earnings report. However, 1&1 has faced challenges in meeting its initial targets for passive infrastructure. After falling significantly short of its goal of deploying 1,000 5G antennas by the end of the previous financial year, 1&1 and its partners in radio mast infrastructure established a new rollout plan in March. This plan aims to accelerate the expansion of antenna locations.
Under the new rollout plan, 1&1 plans to deploy around 1,200 antenna masts by the end of 2023. Starting in 2024, the company intends to activate an additional 3,000 antenna sites annually, with partners such as Vantage Towers, American Towers, GfTD, and Eubanet assisting in the acquisition of new antenna sites.
1&1 has set ambitious targets, aiming to provide 5G services to a quarter of German households by the end of 2025 and to half of them by the end of 2030. Despite missing its rollout targets in 2022, the company now expresses confidence that its expansion partners will fulfill their commitments according to the contracts.
In a separate development, Germany's federal network agency, Bundesnetzagentur, has initiated fine proceedings against 1&1 for its failure to meet its 5G network coverage obligations. As part of the 2019 frequency auction, 1&1 committed to deploying 1,000 5G sites by the end of the previous year. The telco attributes the delays in its network infrastructure deployment to technical issues with its partners, particularly tower operator Vantage Towers, which reportedly failed to meet delivery agreements on multiple occasions. The exact amount of the fine remains undisclosed, and 1&1 has the opportunity to present its case to the Federal Network Agency during the proceedings.
Furthermore, 1&1 has brought attention to the potential influence of rival operator Vodafone, the controlling shareholder of Vantage Towers, on the expansion failures of Vantage Towers in 2022. The German company has prompted an investigation by the Federal Cartel Office into whether unlawful influence played a role in Vantage Towers' shortcomings.
Since acquiring its 5G license, 1&1 has been strategically selecting technology partners to construct its network. The company chose Rakuten Group, a Japanese firm, to design, build, and operate a fully virtualized mobile network using O-RAN technology. Additionally, 1&1 signed a long-term tower rental agreement with Vantage Towers AG.
In August 2021, 1&1 and Rakuten Group announced a long-term partnership to develop 1&1's mobile network in Germany, with Rakuten acting as the general contractor for the project.
Earlier this year, 1&1 launched 5G services utilizing fixed wireless access (FWA) technology. The initial antennas for 5G FWA were activated in Frankfurt and Karlsruhe, and the company plans to expand coverage to other cities, including Hamburg, Essen, Düsseldorf, Wiesbaden, Mainz, Munich, and Freiburg.
Introducing its new offering, "5G at home," 1&1 aims to replace conventional DSL, fiber optic, or cable internet connections. The service is currently available in select regions and provides customers with a wireless alternative for high-speed internet access.
