Deutsche Telekom CEO Criticizes 1&1 AG for Delayed 5G Network Rollout

Deutsche Telekom AG's CEO criticized Germany's fourth mobile operator, 1&1 AG, for its delayed 5G network rollout, referring to it as a "big white spot." Although not explicitly naming 1&1, the CEO highlighted the struggles of the newest network in deploying 5G infrastructure despite having acquired spectrum in 2019, leaving significant parts of the country uncovered. This criticism was voiced during Deutsche Telekom's annual general meeting.

Key Takeaways

• Deutsche Telekom AG boss, Tim Hoettges, criticized Germany’s fourth mobile operator, 1&1 AG, for its delayed 5G network rollout.
• 1&1 AG, despite winning spectrum in 2019, has struggled to deploy its 5G infrastructure, leaving large parts of the country without coverage.
• Hoettges highlighted 1&1 AG's failure to leverage its privileged spectrum position for a successful 5G rollout.
• The criticism was voiced during Deutsche Telekom’s annual general meeting, raising concerns about 1&1 AG's 5G network deployment.
• 1&1 AG's challenges in rolling out 5G infrastructure have become a point of contention in the German telecommunications industry.

News Content

Deutsche Telekom AG's CEO, Tim Hoettges, criticized Germany’s fourth mobile operator, 1&1 AG, for the delayed rollout of its 5G network, labeling it as "just one big white spot." Without explicitly mentioning 1&1, Hoettges highlighted the struggles of the newest network in deploying its 5G infrastructure despite having favorable spectrum, leaving substantial parts of the country uncovered. These remarks were made during Deutsche Telekom’s annual general meeting, emphasizing the challenges faced by the newcomer in establishing its presence in the market.

Analysis

Deutsche Telekom AG's CEO, Tim Hoettges, publicly criticized 1&1 AG's delayed 5G network rollout, signaling potential strain in the German telecommunications market. This may impact 1&1 AG's reputation and competitive positioning, with short-term implications for its market share and long-term consequences for its ability to attract and retain customers. The spat also sheds light on broader challenges in the 5G infrastructure deployment in Germany, affecting consumer access and potentially impacting the country's digital innovation agenda. The criticism may lead to increased scrutiny of 1&1 AG's strategic decisions and operational performance by investors and regulators.

Do You Know?

• 5G network rollout: The deployment of the fifth-generation (5G) mobile network infrastructure to enable faster data speeds, lower latency, and better connectivity for users and businesses.

• Spectrum: The range of electromagnetic radio frequencies used for transmitting data over mobile networks. Different frequencies have different characteristics and are licensed to mobile operators for the provision of services.

• Challenges for new market entrants: The difficulties faced by new players in establishing their presence in the market, which can include infrastructure deployment, regulatory hurdles, and competition from established incumbents.