German operator 1&1 Drillisch said it will apply for admission to the 5G auction with the Federal Network Agency (BNetzA), according to a company statement following a supervisory board meeting. The decision sees the MVNO confirms plans to build its own network and possibly become Germany's fourth mobile operator, if it succeeds in acquiring spectrum rights.
The company said it has agreed with a consortium of European banks a EUR 2.8 billion credit line, in addition to an internal line of credit with its controlling shareholder United Internet to help fund the spectrum bid and network launch, along with its own liquidity and cash flow available. The company said it could reconsider its dividend policy as well if more funds are needed.
1&1 Drillisch is already a MVNO on the Telefonica Germany (O2) network, with nearly 9 million customers. The company and United Internet had lobbied for special conditions in the spectrum auction to encourage the entry of a fourth player. However, the regulator decided in the end that it could not require the other operators to provide national roaming to a new entrant, and any newcomer would have to negotiate commercially for a roaming fallback. If such negotiations fail, it could still ask the regulator to arbitrate.
Like the three incumbent mobile operators, 1&1 filed a lawsuit against the final auction conditions. Its fellow MVNO Freenet is also appealing the auction terms, but has not said whether it plans to bid for spectrum.
