30.09.2024
Ten years after the merger of O2 Telefónica and E-Plus:Outstanding network and attractive prices – Merger serves customers
Strong networks, low prices, high variety: Ten years after the merger of O2 Telefónica and E-Plus on October 1, 2014, the range of services for mobile phone users in Germany has improved significantly. Customers of the mobile providers receive a multiple of data volume and surfing speed at prices that have gradually fallen in recent years - contrary to the general price increase. Mobile phone prices for infrequent and normal users in particular perform well in European studies.
For the main shareholder of O2 Telefónica, the global telecommunications group Telefónica S.A., the merger is a key driver for the further development of the business in Germany. "Telefónica Germany´s journey over the past ten years has been nothing short of transformative. We proudly reflect on their evolution from a challenger to a leading place in commercial, technological, and service excellence. The integration of O2 Telefónica and E-Plus has forged the company into one cohesive team, effectively combining the unique strengths of both businesses. As a result, Telefónica Germany is very well positioned to fuel further growth and innovation," says Ángel Vilá, Chief Operating Officer on the Management Board of Telefónica S.A. responsible for international business.
"The merger of O2 Telefónica and E-Plus is a success that can be measured by many key figures. The company's profitability has doubled in the past ten years, and cash from operating activities, the operating cash flow, has even increased fivefold. Our network has been rated as 'very good' since 2020," says Markus Haas, CEO of O2 Telefónica. "Customer satisfaction is higher today than ever before. Prices are falling and customers are getting more and more service for their money. With the strength we have gained as a driver of competition, we are delivering real added value for people and companies in the country."
Consumers experience noticeable improvements
The merger of O2 Telefónica and E-Plus was accompanied by the largest mobile network integration in Europe in recent decades. This has created a high-performance mobile network operator on a par with the two providers that had previously dominated the German market. Thanks to intense infrastructure competition with record investments, smartphone users in Germany have been able to choose from three mobile networks that are at least "very good" since 2020, according to the trade magazine connect.
The majority of consumers in Germany today are very satisfied with the services provided by their mobile provider. Four out of five respondents to a recent representative population study conducted by the market research institute Skopos consider the mobile services they use to be fair and affordable. The same number of respondents see sufficient variety in providers and offers on the market.
The digital future needs strong networks
Numerous analyses show the paramount importance of digitalization for the future sustainable development of the economy and society. The use of artificial intelligence, tackling climate change and strengthening democracy and participation: The major tasks of the future are based on reliable high-speed networks and high-performance IT systems.
"Germany needs a digitalization push for prosperity and growth. Networks everywhere and at all times are the basis for this. With the economic strength we have gained, we can deliver exactly that," says Markus Haas with a view to future growth prospects. "Our merger has made O2 Telefónica a responsible partner for connecting the country. We are moving forward with our own digital transformation, focused on growth and an ever better user experience for our many millions of customers."
Further information on competition in the mobile communications market, network expansion and digitization in Germany can be found at www.telefonica.de/vernetztjetzt [in German].
Written by: Guido Heitmann
Principal Corporate Communications, Reputation & Positioning
Guido Heitmann verantwortet seit August 2023 in der Kommunikation der O2 Telefónica die Reputations- und Positionierungsthemen des Unternehmens. Zuvor leitete er unter anderem das Corporate Communications Team der Unternehmenskommunikation. Er ist seit 2001 im Kommunikationsteam des Unternehmens in unterschiedlichen Funktionen tätig, ursprünglich bei der E-Plus Gruppe und seit 2014 bei O2 Telefónica. Geboren in Buxtehude, Diplom-Kaufmann, Schifffahrtskaufmann und zuvor Kommunikator der Hapag-Lloyd AG in Hamburg. Kommunikationsthemenschwerpunkte: Reputation, Digitalisierung, Regulierung, Recht und unternehmerische Verantwortung.
Twitter/X: @gu_heitmann