Deutsche Telekom CEO Tim Hoettges has called on 1&1 to invest jointly in rolling out fibre in Germany. In an interview with the Funke group newspapers, Hoettges said the alternative operator should show it's ready to invest in infrastructure. He also warned against national roaming requirements in the upcoming spectrum auction, something 1&1's parent United Internet supports.
The DT CEO said the two could connect over 5 million households to fibre broadband if they cooperated on a joint roll-out and shared the civil enginnering costs. He did not say how much such a plan could cost.
At the same time, the Telekom chief accused 1&1 of not investing in a "single cable or radio mast". He also warned against unfair competition in the allocation of new mobile frequencies, should 1&1 want wholesale access on the Telekom network. "Everyone who participates in the auction must build its own network," Hoettges said.
1&1's parent company United Internet has said it's willing to participate in the upcoming spectrum auction if fair conditions are provided. The company already has a MVNO contract for access to Telefonica Deutschland's network, which could provide a path to 5G. United Internet said it's open to setting up its own mobile network if it received guaranteed access to a roaming deal with one of the existing operators.
Telefonica says no to fourth operator
Markus Haas, CEO of Telefonica Deutschland, said earlier that a fourth mobile network in Germany would be a mistake, and would not resolve the infrastructure problems in the country. In an interview with Handelsblatt, he said United Internet had not invested "a single euro", despite conditions in place since 2014 to encourage a new operator. The European Commission reserved capacity on Telefonica's network as part of the merger of E-Plus and O2, and this has allowed United Internet's 1&1 Drillisch to expand its mobile business.
Haas said the German telecommunications infrastructure suffered from under-investment. "We have the weakest networks and most MVNOs in Europe. There has to be a connection." The CEO said he was also opposed to special conditions or national roaming requirements in the spectrum auction. Encouraging investment by the three existing mobile networks would result in the best outcome for German infrastructure and 5G development, he said.
United Internet CEO Ralph Dommermuth rejected Telefonica's argument, saying the idea that there is a connection between the number of MVNOs and weak mobile coverage "borders on alternative facts". Speaking to Handelsblatt, he said there was no logic to the argument that an additional mobile network operator would hold back investment. "In the end, that would mean that a single provider would be the optimal solution," said Dommermuth.
He said that the company would invest heavily if it could also use the networks of other operators for a fee. A roll-out would focus initially on heavily populated areas, "like the other network providers", the CEO said, and the company could cooperate with municipalities on reaching other areas.
