Telefónica Deutschland and 1&1 Drillisch signed National Roaming Agreement

Telefónica Deutschland and 1&1 Drillisch have agreed upon the long-term stipulations of their future cooperation in a National Roaming Agreement (NRA) and signed a corresponding contract on 21 May 2021. With the conclusion of the NRA and as part of the overall agreement, the remaining ongoing price reviews initiated by 1&1 Drillisch will no longer be pursued. As planned, the companies are putting their long-term partnership on a new contractual basis with the signing of this agreement. With the NRA Telefónica Deutschland is securing long-term valuable revenue streams. "The long-term continuation of our partnership via the national roaming agreement now signed as planned provides planning security. With the significant proceeds from the agreement, we will further strengthen our O₂ network and accelerate our expansion once again. The agreement also ensures that our network investments in rural areas will pay off significantly faster than previously planned," says Telefónica Deutschland CEO Markus Haas.

In the contract, the commercial cornerstones of Telefónica Deutschland's NRA offer, which 1&1 Drillisch bindingly accepted on 15 February 2021, have been successfully implemented.

• The NRA has an initial contract period of 5 years, retroactively starting 1 July 2020, and can be extended twice. First, 1&1 Drillisch has an option to extend until mid-2029. For the period thereafter, a further extension for up to 5 years is possible subject to negotiations.

• For the initial contract period, the commercial terms are defined assuming significant mobile traffic growth in Telefónica Deutschland's network. As specified in the merger remedies, the NRA pricing structures are derived from the MBA MVNO contract. These are in principle a combination of per unit prices and pre-determined volumes. Going forward, 1&1 Drillisch can reduce or increase required capacities by contractually defined bands a few times a year. A price review mechanism can be initiated once a year.

• National roaming services include available 2G/3G/4G coverage while MBA MVNO services continue to include Telefónica Deutschland's available 2G/3G/4G/5G coverage. Access restrictions to Telefónica Deutschland's 4G mobile network apply in contractually defined areas starting 1 January 2026.

• After a defined transition period for the migration of 1&1 Drillisch's existing customers to its own network, 1&1 Drillisch will provide these customers with 5G services exclusively via its own 5G network.

• Until completion of 1&1 Drillisch's customer migration, national roaming and MBA MVNO services run in parallel. The commercial terms of the NRA apply to both services.

Telefónica Deutschland and 1&1 Drillisch have agreed confidentiality with regards to further details of the NRA. Telefónica Deutschland confirms its FY21 outlook and medium-term guidance.