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DGAP-News: 1&1 AG / Key word(s): Contract/Forecast
1&1 signs contracts with Vantage Towers and 1&1 Versatel for roll-out of its mobile network and publishes forecast for fiscal year 2022
Vantage Towers is first partner for passive network infrastructure
Vantage Towers is one of the largest owners of radio towers in Germany. As such, the company will play a key role in providing the passive network infrastructure in the 1&1 mobile network. This means that during the network construction phase, 1&1 will be able to access several thousand existing towers of Vantage Towers, as well as new antenna locations still to be developed. Specifically, the joint use of 3,800 roof and mast locations was agreed until the end of 2025. In addition, there is a potential expansion to up to 5,000 sites.
Vantage Towers will also be responsible for installing 1&1's 5G high-performance antennas on its towers as well as for services relating to approval procedures, preparatory work and the construction of new antenna sites. The term of the individual location rents is at least 20 years and can be extended several times by 1&1.
"After announcing our far-reaching technology partnership with Japanese OpenRAN expert Rakuten in August, we have now gained a strong partner for the passive network infrastructure in Vantage Towers," said Ralph Dommermuth, CEO of 1&1 AG. "By cooperating with established tower companies, we want to primarily use existing antenna sites. This is environmentally friendly, conserves resources and at the same time accelerates our rollout."
"The partnership with 1&1 is another important milestone for us, and it demonstrates our ability to attract exciting organic growth opportunities. By co-locating on our sites, 1&1 can proceed with a timely launch of its 5G network - cost effectively and with high quality. We're delighted to be supporting the fast roll-out of 5G in Germany and a sustainable digital transformation in Europe," said Vivek Badrinath, CEO of Vantage Towers AG.
Leasing of fiber-optic connections and data centers from 1&1 Versatel
All 1&1 antennas will be connected to fiber-optic cables. Four central data centers are planned for the core network, connected to which more than five hundred decentralized data centers will be created, to which the antenna sites will be connected. This architecture enables extremely short transmission paths, which are essential for real-time applications. The 1&1 affiliate 1&1 Versatel Deutschland GmbH owns one of Germany's largest and most powerful fiber-optic transport networks and will be responsible for the access network (in particular fiber-optic lines) and for setting up and operating the 1&1 data centers. The intercompany agreement for the lease of fiber-optic lines and data center infrastructure has an initial term until the end of 2050.
1&1 OpenRAN moves network intelligence completely to the cloud
In contrast to traditional network architectures, the OpenRAN approach chosen by 1&1 makes a strict separation between hardware and software. Whereas the intelligence in conventional proprietary mobile networks is primarily situated in dedicated hardware at the respective antenna sites, all network functions in 1&1 OpenRAN are located in a private cloud and controlled by software. This means that retrofits or maintenance at the antenna base stations are no longer necessary. Updates can be carried out efficiently and inexpensively via the software.
Only Commercial off-the-shelf hardware is used at the 1&1 data centers. The only mobile communications technology in the traditional sense are therefore the 5G high-performance antennas attached to the otherwise slender radio masts.
Positive outlook for fiscal year 2022
For the fiscal year 2022, 1&1 anticipates further growth in service revenues to approx. EUR 3.2 billion as well as EBITDA on a par with expectation for 2021 (approx. EUR 670 million). The EBITDA forecast for 2022 includes an increase in initial costs for 5G network construction of approx. EUR 30 million to approx. EUR 70 million (2021: approx. EUR 40 million, compared with previously expected EUR 30 million).
Mainly due to the acquisition of antennas, servers and software for the 1&1 mobile network, capital expenditure (capex) is expected to rise to around EUR 400 million in 2022 (2021: around EUR 75 million).
Maintal, December 9, 2021
About 1&1 AG
1&1 AG is a listed telecommunications provider based in Maintal. The company is part of the United Internet AG group. 1&1 offers its customers a comprehensive portfolio of wireless services and broadband access. It also offers attractive bundled products comprising mobile and fixed-network services, as well as value-added applications such as home networking, online storage, video-on-demand, smart home solutions and IPTV. While the brand 1&1 addresses value and premium segments, the Group's discount brands appeal to a price-conscious target groups.
Following its successful participation in the 5G frequency auction, 1&1 is now building the most innovative mobile network in Europe based on the new OpenRAN technology. In May 2021, 1&1 signed a national roaming agreement with Telefónica Deutschland, which enables the company to offer its customers nationwide reception already in the roll-out phase of its network. In August 2021, the company announced a far-reaching technology partnership with the world's leading OpenRAN expert Rakuten.
Since November 8, 2021, the former Drillisch Netz AG has been operating under the name 1&1 Mobilfunk GmbH.
Vantage Towers AG is a leading tower company in Europe with around 82,000 sites in ten countries, connecting people, businesses and devices in cities and rural areas.
The company was founded in 2020 and is headquartered in Düsseldorf, Germany. Vantage Towers has been listed on the Deutsche Börse's Prime Standard Index in Frankfurt since 18 March 2021. On 20 September the company was admitted to the MDAX and TecDAX.
Vantage Towers' portfolio includes towers, masts, rooftop sites, distributed antenna systems (DAS) and small cells. By building, operating and leasing this passive infrastructure to MNOs, IoT providers or public utility companies Vantage Towers is making a significant contribution to better connectivity and the sustainable digital transformation of Europe.
About 1&1 Versatel Deutschland GmbH
1&1 Versatel is a B2B provider for fiber gigabit connections and network-related services. The company is a subsidiary of United Internet AG (ISIN DE0005089031). 1&1 Versatel operates one of the biggest and most powerful fiber networks in Germany - providing its own network in more than 250 German cities. Due to its powerful infrastructure and the consistent focus on B2B customers, 1&1 Versatel is able to offer solutions for all modern telecommunications requirements of the gigabit society. 1&1 Versatel is constantly expanding and developing its network and forwards the nationwide expansion of the fiber network in Germany.
Press Contact 1&1 AG
09.12.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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