Telefonica Germany and 1&1 Drillisch have signed a contract regulating their future cooperation under a National Roaming Agreement (NRA). As part of the overall agreement, 1&1 will halt its proceedings to have the prices for using Telefonica's network reviewed. A final expert opinion on the second review of the network access agreement price was expected in mid-2021. By signing the contract, Telefonica and 1&1 are implementing the main points of a binding pact accepted by the parties on 15 February.
The NRA has an initial term of five years, retroactively from 01 July 2020. It can be renewed twice. Initially, 1&1 has an option to unilaterally extend it until mid-2029. Afterwards, a further extension of up to five years is possible at 1&1 Drillisch's request. Telefonica is obliged to offer non-discriminatory prices in the case of a second extension of the agreement. The prices for the first extension option, until June 2029, are determined by specific rules.
The commercial terms of the agreement regulating the initial contract period are defined according to expected growth in mobile traffic over Telefonica's network. The price structures of the NRA are derived from the MBA MVNO contract, essentially a combination of unit prices and pre-determined purchase volumes. 1&1 can in future reduce or increase the purchase volume several times a year within contractually defined limits. 1&1 Drillisch can start a review of the price mechanism once a year.
National roaming includes the available 2G/3G /4G network coverage, while MBA MVNO services continue to include the available 2G/3G/4G/5G network coverage from Telefonica Germany. Access restrictions to the 4G mobile network of Telefonica Germany will apply in contractually defined urban areas from 01 January 2026. 1&1's 5G network will cover these areas, where a minimum coverage for national roaming at up to 50 Mbps is always ensured.
1&1's existing customers will migrate to Drillisch's network after a contractually stipulated period of time, in order to be supplied with 5G exclusively via the 1&1 Drillisch 5G network. The national roaming and MBA MVNO services will run in parallel until the migration of existing customers has been completed. The commercial terms set out in the NRA apply to both services.
