1&1 Drillisch AG - New draft of the expert opinion considers price increase claimed by Telefónica in December 2018 in the reviewed period to be unjustified
Maintal, 8 October 2020. Today, Drillisch has received a new draft of the expert opinion in the proceedings to review a price increase claimed by Telefónica. Telefónica had increased the advance service prices under the MBA MVNO agreement retroactively in December 2018 by a one-off amount of around EUR 64 million with reference to the 2015 frequency auction.
The parties had commented on the first draft of the expert opinion of 27 May 2020. The expert has taken the arguments of both parties into account and has confirmed the calculation method of his first draft opinion. In his new draft opinion, the expert therefore concludes again that the price increase claimed by Telefónica in December 2018 is fully unjustified for the reviewed period (2016 to 2020). Accordingly, the price increase of December 2018 does not result in a payment obligation of 1&1 Drillisch.
The parties may comment on the legal explanations of the new draft opinion. 1&1 Drillisch expects the final expert opinion to be issued by the end of the year. Apart from that, no further expert proceedings initiated by Telefónica are pending.
On the other hand, 1&1 Drillisch demands in its price adjustment proceedings 1, 2, 5 and 6 substantial reductions of the advance service prices of the MBA MVNO agreement with retroactive effect from Telefónica. These price adjustment proceedings can only result in an improvement of the purchasing conditions of 1&1 Drillisch, but cannot establish payment obligations of 1&1 Drillisch towards Telefónica.
Maintal, 8 October 2020
1&1 Drillisch AG
The Management Board
Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 1&1 Drillisch AG management. Various risks, uncertainties and other factors, both known and unknown, can cause actual developments, especially in the results, financial position, and the business of our Company, to deviate substantially from the projections about the future as they are shown here. The Company does not undertake any obligation to update such future-oriented statements and to adapt them to future events or developments.
Head of Investor Relations
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