Vodafone boss: Really more dead spots due to the start of 1 & 1?

Competition invigorates business is an economic truism that the head of Vodafone does not want to accept. Hannes Ametsreiter sees United Internet / 1 & 1's entry as a network operator as a danger for consumers. The warning is not altruistic, however.

When the Vodafone boss comments on the status of the mobile network in Germany, that matters. The Düsseldorf group is after all one of only three network operators for mobile communications in Germany. So far, at least, because with United Internet, the company behind 1 & 1, a new competitor is in the starting blocks. Which doesn't go down well with Vodafone.

Vodafone boss: Cell phone customers are better off without 1 & 1

Hannes Ametsreiter, CEO of Vodafone, explains why he considers United Internet's entry into the hitherto rather exclusive line-up of network operators to be risky, especially with regard to the upcoming frequency auctions in 2023: "If you now distribute the same spectrum to four operators, you would have to take something away from one or more of them. The information superhighway will then be smaller for everyone "(source: Neue Osnabrücker Zeitung via press portal).

He also fears gaps in network coverage, as the CEO made clear a few weeks ago. Among other things, the frequencies in the 800 MHz range will be re-allocated, which form the so-called LTE coverage layer in Germany - i.e. are responsible for universal 4G coverage.

Accordingly, the demand: Instead of auctioning new frequency ranges, the existing distribution should be extended until 2030, i.e. for another five years. "I hope that we learn from the wrong decisions made in previous frequency assignments," continued Ametsreiter. The requirement is in fact equivalent to excluding newcomers 1 & 1 for the rest of the decade.

Why 1 & 1 is not a threat to network coverage

But what is it about the supposed danger from 1 & 1? The responsible Federal Network Agency is currently examining possible scenarios. Another principle is that network coverage should at least be improved after the current frequency assignments have expired. Under no circumstances should things go downhill from 2025 (source: Federal Network Agency).

Smartphones will still be able to surf and make calls securely in Germany from 2026. Current cheap models can be found in the video :

At the same time, competition is to be strengthened, so all possible scenarios must give access to new competitors. It is still unclear which way to go: options include a complete re-auction of the frequencies at 800 MHz or a takeover by a single operator. This would be obliged to guarantee that other providers would use it. Mixed versions are also being discussed.

The Federal Network Agency also sees the risk of "bidding competition" for three frequency blocks for four potential bidders (Telekom, Vodafone, Telefónica / o2, United Internet / 1 & 1). However, they are of the opinion there that this can be brought under control through alternative procurement procedures. The risk of consumers increasingly falling into dead spots from 2026 onwards is low.