Mobile communications: Your own mobile phone network is still financial ballast for 1&1

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Cellular
Own cell phone network is still financial ballast for 1&1

The 1&1 logo is installed on the roof of the company headquarters. photo

© Wolf von Dewitz/dpa

For years there were three cell phone networks in Germany, and at the end of 2023 the number four, 1&1, started. This is an expensive matter for the company – it may take some time before the investments are worthwhile.

The expansion of the fourth German Mobile phone network puts a significant financial burden on the operator 1&1. As the company announced on Thursday in Montabaur, sales rose by 3.4 percent to around 4.1 billion euros last year, but the operating result (EBIT) fell by 14.8 percent to 456 million euros. This was due to scheduled depreciation related to network expansion, such as costs for antennas. According to the company, these depreciations will increase in the coming years, but will gradually be offset by increasingly larger savings.

1&1 currently uses the O2 network in most areas of Germany and pays rent for it. The larger your own network, which is currently still very small, the less rent you pay because more and more customers are then connected to the 1&1 antennas. The 1&1 mobile phone network started at the end of 2023 and is number four behind the networks from Telekom, Vodafone and O2. The new network operator has around 3,200 employees. In addition to the headquarters in Montabaur (Rhineland-Palatinate), Karlsruhe is the most important location. 1&1 belongs to the internet group United Internet, which grew significantly in 2023.

dpa

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