DGAP-News: Telefónica Deutschland Holding AG
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Telefónica Deutschland Holding AG: Telefónica Deutschland agrees on spectrum lease to 1&1 Drillisch, implementing a remaining EU merger remedy
18.12.2019 / 18:01
The issuer is solely responsible for the content of this announcement.
Munich, 18 December 2019
Telefónica Deutschland agrees on spectrum lease to 1&1 Drillisch, implementing a remaining EU merger remedy
- Telefónica Deutschland complies with EU merger remedy by leasing spectrum to 1&1 Drillisch
- Maintaining a strong and competitive spectrum position
- No impact on Telefónica Deutschland business development and model
Telefónica Deutschland has agreed upon the lease of a frequency package of 2x 10 MHz in the 2.6 GHz band to 1&1 Drillisch until its maturity at the end of 2025 as requested by the latter. In return, Telefónica Deutschland will receive an annual usage fee.
Telefónica Deutschland complies with EU merger remedies
By leasing the spectrum to 1&1 Drillisch Telefónica Deutschland complies with another remedy agreed with the European Commission in the context of the merger of Telefónica Deutschland and E-Plus from 2014. At the same time, the Company is taking the opportunity to monetise a small part of its capacity spectrum.
The plans to lease spectrum to 1&1 Drillisch are still subject to approval by the Federal Network Agency. However, the plans have already been reviewed in advance by the responsible Federal Network Agency and the European Commission.
Option for national roaming in the Telefónica Deutschland network
The spectrum lease is a conditional requirement for 1&1 Drillisch to be able to convert its current capacity-based MBA MVNO contract for the use of the Telefónica Deutschland network into a capacity based agreement for national roaming. The subsequent potential extension of the long-term network partnership between the two companies will ensure sustained revenue streams for Telefónica Deutschland from the cooperation.
Spectrum lease has no impact on network expansion plans
Even after the lease, Telefónica Deutschland maintains a highly competitive spectrum position of over 300 MHz of valuable spectrum. There is thus no impact on the company's plans for the expansion and roll-out of our 4G and 5G networks as announced at our Strategy Update on 11 December 2019.
We reiterate our full-year 2019 guidance as well as our mid-term targets.
More Information:
Telefónica Deutschland
Investor Relations
Georg-Brauchle-Ring 50
D-80992 München
t +49 (0)89 2442-1010
f +49 (0)89 2442-2000
e ir-deutschland@telefonica.com
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