Germany’s 1&1 Completes Migration to Its Open RAN 5G Network — But Challenges Remain

Germany's 1&1 migrates all mobile customers to open RAN 5G network

German telecom challenger 1&1 has reached a major milestone: all 12.48 million of its mobile customers have now been migrated to its own open RAN-based 5G network. With this move, 1&1 now operates the world’s largest open RAN mobile network by users, strengthening its position as Germany’s fourth mobile operator.

The company also met a key regulatory requirement well ahead of the December 31, 2025 deadline to demonstrate competitive independence.

A Massive Migration — and More Work Ahead

Today, 1&1 has around 1,500 antenna sites active across Germany, with approximately 4,500 more in development. In areas where its network is not yet available, the operator relies on a national roaming agreement with Vodafone Germany, implemented in 2024—replacing its long-standing reliance on Telefónica Deutschland’s network.

During the company’s earnings call, CFO Sascha D’Avis said 1&1 is on track to achieve 25% population coverage by the end of December. Reaching that goal will require roughly 2,000 active antenna sites.

However, the Vodafone roaming arrangement has proven slightly costlier than expected, due partly to slower network growth on Vodafone’s side.

Despite migration-related slowdowns earlier in the year, 1&1 added 40,000 new mobile customers in Q3 2025.

Key Challenges: Lowband Spectrum Delays and Tower Disputes

Although the migration milestone is significant, several obstacles still lie ahead.

Still Waiting for Lowband Spectrum

1&1 is yet to gain access to crucial sub-1GHz spectrum, which offers better rural coverage and indoor penetration.

Earlier in 2024, Germany’s regulator BNetzA extended the lowband licenses (800MHz, 1800MHz, 2.6GHz) for Deutsche Telekom, Telefónica, and Vodafone for five more years. In return, these operators must share portions of this spectrum with 1&1 — but negotiations have stalled.

United Internet CFO Carsten Theurer now expects that BNetzA will need to intervene. Access is anticipated in early to mid-2026, later than the original timeline.

Conflict With Vantage Towers

1&1 is also waiting for the outcome of a dispute with Vantage Towers and Vodafone regarding delays in the delivery of contracted antenna sites.

Germany’s competition authority has already suggested the delays may constitute anti-competitive behavior that hinders 1&1’s market entry. A final ruling was expected in mid-2025 but is still pending.

Acquisition Rumors — and Official Silence

German media recently speculated that Telefónica might be exploring a new strategic relationship with 1&1, including a possible acquisition. Theurer declined to comment, stating only that no discussions have taken place but that the company would always be open to conversations if approached.

Financial Snapshot for 2025

For the first nine months of 2025:

• Revenue: €3.02 billion (stable year-over-year)

• EBITDA – Access Segment: €611 million (down 3%)

• EBITDA – 1&1 Mobile Network Segment: –€201.2 million (further decline)

• Capex: €228.7 million

Full-year 2025 expectations:

• Revenue: Flat vs. 2024

• Contracts: Stable

• EBITDA: ~€545 million

• Capex: Reduced to €400 million, as €50 million moves into early 2026

A New Era for Germany’s Fourth Operator

With its customer migration complete and a rapidly expanding open RAN 5G network, 1&1 has achieved a breakthrough many doubted was possible. Yet regulatory delays, tower disputes, and rising network costs mean the toughest phase—scaling efficiently and profitably—may still lie ahead.