Unexpected delay at first stopover due to supply bottlenecks

DGAP-News: 1&1 AG / Key word(s): Miscellaneous
1&1 mobile network: Unexpected delay at first stopover due to supply bottlenecks
16.09.2022 / 20:48 CET/CEST
The issuer is solely responsible for the content of this announcement.

1&1 mobile network: Unexpected delay at first stopover due to supply bottlenecks

  • Supply problems at one of the three 1&1 build-out partners

  • Interim target of 1,000 5G antenna sites by the end of 2022 will not be achieved

  • No impact on planned network launch

  • Obligations to be achieved well before 2030

Montabaur, September 16, 2022 –1&1 AG (ISIN DE 0005545503) is working as a new entrant on the establishment of a new mobile network based on the innovative OpenRAN technology. Important milestones have already been reached in this process. In the next step, 1&1 will offer its first broadband services for the home from December. These will be up to 1 Gbit/s fast and will be provided using high-performance 5G technology. Mobile services are scheduled to be offered from next summer.

The frequency requirements of the Federal Network Agency stipulate the installation of 1,000 5G antenna sites by the end of 2022 as an interim target for all network operators. This target is achievable in principle, but quite challenging for a new entrant.

After 1&1 had been negotiating national roaming with the established network operators for over two years and was only able to conclude a corresponding agreement after the EU Commission intervened in May last year, three high-performance infrastructure providers were immediately commissioned to roll out the network.

While two roll-out partners are delivering according to contract, surprisingly the most significant partner in terms of volume, which has contractually committed to providing approximately two-thirds of the 1,000 antenna sites by the end of 2022, has recently reported problems meeting its obligations on time. Following in-depth discussions, the roll-out partner has made efforts to implement various acceleration measures and increase its roll-out speed. However, these efforts were unfortunately unsuccessful. Today, 1&1 received final notification that the antenna sites agreed at the end of the year can only be provided after a significant delay.

1&1 is working hard to close this gap with its other partners and minimize the delay. However, the interim target of 1,000 5G sites is not expected to be reached until summer next year.

The delayed construction of the first sites will not affect the originally planned network launch mentioned at the beginning. The delay will also not affect the fulfillment of the coverage obligations assumed by 1&1 – 1&1 remains on track to achieve the planned coverage rate of 50% of all households well before the end of 2030 and, together with its roll-out partners, will do everything in its power to fully make up for the delay that has now occurred in the ramp-up of the network roll-out.

Montabaur, 16 September 2022

1&1 AG

The Management Board

About 1&1

1&1 AG is a listed telecommunications provider, headquartered in Montabaur. The company is part of the United Internet AG group. 1&1 offers its customers a comprehensive portfolio of wireless services and broadband access. It also offers attractive bundled products including mobile and fixed-network services, as well as value-added applications such as home networking, online storage, video-on-demand, smart home solutions and IPTV. While the brand 1&1 addresses value and premium segments, the Group’s discount brands appeal to price-conscious target groups.

Contact:
Oliver Keil
Head of Investor Relations
Mail: ir@1und1.de

16.09.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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