The squabbles between Drillisch and Telefónica on the 5G roaming contract

The squabbles between Drillisch and Telefónica on the 5G roaming contract


MarketBusiness

Petr Chachin | 02/21/2021

The squabbles between Drillisch and Telefónica on the 5G roaming contract

Telecommunications newcomer Drillisch can now build its own infrastructure and become Germany’s fourth mobile operator, German website Focus Online reported.

The country’s new mobile operator, 1 & 1 Drillisch, has signed a contract with Telefónica / O2 for national roaming and mobile bistream access after
consideration by the European Commission (EC), which has requested Telefónica to improve its proposal.

The national roaming agreement is initially for five years and can be renewed twice. The final details of the contract are to be finalized by May, but the agreement that will
Drillisch access to the O2 network is required.

Drillisch must leverage its competitors’ networks to deliver services while it builds its own infrastructure, which was the terms of the 5G licenses issued in Germany in
during an extremely expensive and lengthy 5G spectrum auction in 2019.

This was done in order to introduce a fourth mobile operator to the German market, joining Deutsche Telekom, Vodafone and Telefónica / O2.

Auction

The 5G auction has been dragged out due to squabbles and legal attempts to cancel the regulator’s conditions: in addition to introducing a fourth operator, the Bundesnetzagentur (BNetzA) regulator has also allocated part of the spectrum for
creation of private networks by industry groups. Even after the end of the auction, the regulator had to settle the dispute between Drillisch and Telefónica.

Drillisch paid € 1.1 billion for its spectrum and then entered negotiations with three of its competitors on a national roaming contract, eventually settling on the firm
Telefónica / O2, with which it already had an agreement to create a mobile virtual network operator (MVNO).

However, this scheme, created in 2014, only covered the older generations of cellular communications – 2G, 3G, and 4G. The 5G approval allows Drillisch to become Germany’s fourth mobile operator.

Telefonica Telecommunications Operators



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