United Internet AG: 1&1 sets course for nationwide 5G: Conclusion of binding heads of terms for a long-term exclusive national roaming partnership with Vodafone

Montabaur, August 2, 2023. Today, 1&1 Mobilfunk GmbH ("1&1 Mobilfunk"), a subsidiary of 1&1 AG and indirect subsidiary of United Internet AG, has concluded binding heads of terms with Vodafone GmbH ("Vodafone") for a long-term exclusive national roaming partnership.

In the binding heads of terms the parties have committed themselves to conclude a final national roaming cooperation as soon as possible. The national roaming cooperation will include the non-discriminatory provision of national roaming services in areas that are not yet covered by the new 1&1 mobile network and will comprise especially the access to the Vodafone 5G network including the mobile standards 2G and 4G as well as future mobile standards and technologies.

The start date for the national roaming services from Vodafone will be one year after conclusion of the final national roaming cooperation, however on October 1, 2024 latest. The base term of the national roaming cooperation will be 5 years from that point on. 1&1 Mobilfunk will up to two times have the right to extend the term of the national roaming cooperation by five years each – i.e., by up to additional 10 years. The end of the contract term is followed by a transition period of three years.

The calculation basis is a so-called capacity model, under which 1&1 will pay a fixed price per percentage point for such percentage of the Vodafone network which is used by its customers. Such fixed price changes from time to time in line with the cost development of the Vodafone network. The conditions are hereby geared to future market developments and enable 1&1 to make competitive offers over the long term.

From the launch of the 1&1 mobile network based on of the new OpenRAN technology, scheduled for the end of next month on, all customers on the 1&1 network with 4G mobile tariffs will initially be supplied with nationwide national roaming services by Telefónica until the national roaming supply by Vodafone is available. From then on, 5G mobile tariffs can be offered nationwide on the 1&1 network. In the transition period until the provision of 5G national roaming by Vodafone, 1&1 will provide its customers mobile 5G services within the framework of the previous MVNO-model. 1&1 will obtain the mobile services required for this from Telefónica or Vodafone. The prerequisite for this is an extension of the parallel operation approved by the Federal Network Agency until December 31, 2023 anyway, which 1&1 will apply for today.

As soon as all 1&1 customers have been activated for national roaming services by Vodafone, 1&1 Mobilfunk will exclusively draw national roaming services from Vodafone during the contract term.

The long-term assured access to nationwide 5G national roaming services is another milestone in the building of Europe's most innovative mobile network.

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