Telefonica, 1&1 Drillisch conclude national roaming contract

25 May 2021

Drillisch Online, a wholly-owned subsidiary of 1&1 Drillisch, has announced it has concluded a long-term national roaming agreement with Telefonica Deutschland, as it seeks to become Germany’s fourth mobile network operator. The agreement, which goes back to a commitment by Telefonica as part of the EU antitrust approval of its merger with E-Plus in 2014, follows the signing of a letter agreement between 1&1 Drillisch and Telefonica in February.

The start date for national roaming will be set by 1&1 Drillisch in parallel with the launch of its mobile network. From this date, all new and existing customers migrated to 1&1 Drillisch’s network will have access to the 5G network, and automatically non-discriminatory access to Telefonica’s 2G and 4G mobile network via national roaming in areas not yet rolled out by 1&1 Drillisch. From 1 January 2026, access to 4G national roaming in Telefonica’s mobile network will be limited to some extent in certain urban areas which will then be covered by 1&1 Drillisch’s 5G network. However, in these areas a minimum coverage of national roaming of up to 50Mbps is always ensured. 1&1 Drillisch customers, who are currently activated on Telefonica’s network, will be migrated within a contractually agreed transition period following the launch of 1&1 Drillisch’s 5G network and will continue to have 2G, 4G and 5G access to Telefonica’s mobile network until then.

The national roaming agreement has an initial term of five years, retrospectively from 1 July 2020 until 30 June 2025, and is based on the pricing mechanisms of the first five years of the pair’s MBA MVNO agreement. It provides for annually decreasing prices, which are lower than the prices currently charged by Telefonica under the MBA MVNO agreement. 1&1 Drillisch has the right to extend the initial term until 30 June 2029, and at 1&1 Drillisch’s request an additional contract extension up to 30 June 2034 is possible. The prices for the first extension option until June 2029 are determined by specific rules, following which Telefonica continues to be obliged to offer non-discriminatory prices. As part of the overall agreement, the ongoing price review proceedings initiated by 1&1 Drillisch will also be terminated.