1&1 AG

1&1 AG is a German telecommunications company headquartered in Montabaur, Rhineland-Palatinate. The company sells fixed broadband, mobile communications and associated internet services to consumers and businesses, primarily in Germany. It is the telecommunications operating company associated with United Internet AG and is listed on the Frankfurt Stock Exchange under the ticker 1U1.DE. The company’s corporate history is rooted in the predecessor businesses of Drillisch, whose origins reach back to telecommunications equipment and service activities in the 1980s. Drillisch initially operated as a service provider and reseller rather than as a network owner. It marketed mobile telephones, accessories and tariff packages using the infrastructure of established German network operators. The business later expanded into internet access, mobile data and a portfolio of online-oriented brands. A major strategic step came through cooperation with Telefónica following the Telefónica–E-Plus merger. Regulatory remedies associated with that transaction enabled Drillisch to obtain substantial wholesale access to Telefónica’s German mobile network. This helped the group scale its mobile customer base while remaining dependent on partner infrastructure. The company also developed retail and online distribution through brands such as Yourfone, smartmobil.de, PremiumSIM, sim.de, simplytel and related subsidiaries. In 2017, United Internet became the majority shareholder of Drillisch in a transaction that transferred United Internet’s 1&1 telecommunications activities into the enlarged company. The combination brought together 1&1’s broadband and internet operations with Drillisch’s mobile-service platform. The company adopted the name 1&1 Drillisch Aktiengesellschaft in 2018 and later became 1&1 AG in June 2021. 1&1 subsequently moved toward becoming a facilities-based mobile network operator. In Germany’s 2019 5G spectrum auction, it acquired spectrum in the 3.5 GHz and 2.1 GHz bands and began planning a dedicated 5G network. The rollout was delayed relative to the original timetable, and the company continued to use wholesale arrangements while its own network was built. A national-roaming agreement with Telefónica was announced in 2021, followed by a long-term roaming agreement with Vodafone Germany announced in 2023 and finalized in 2024. The Vodafone arrangement allows customers to receive service where the 1&1 network is not yet available. The group’s fixed-line activities use a combination of wholesale access and infrastructure associated with 1&1 Versatel, including DSL and fiber-optic capabilities. Its mobile business is supported by its own network, partner networks and a collection of consumer and business brands operated through subsidiaries. In addition to connectivity, the wider 1&1 and United Internet ecosystem has included domains, hosting, servers, cloud services and other internet infrastructure products. 1&1 competes in Germany with Telekom Deutschland, Telefónica Germany and Vodafone Germany. Its business is affected by spectrum policy, wholesale-access regulation, network deployment costs, roaming arrangements and the competitive pricing of broadband and mobile tariffs. Publicly reported operating figures for 2021 included approximately 15.4 million customer contracts, consisting of mobile and broadband connections, and revenue of approximately €3.91 billion; these figures relate to the 2021 financial year and should not be treated as current operating data.

The corporate history of 1&1 AG is closely connected with the development of Drillisch and the telecommunications businesses later combined under United Internet. A predecessor company associated with telecommunications equipment and service activities was established in the 1980s. Drillisch-related businesses expanded from communications equipment into mobile-phone distribution, tariff packaging and service provision. Drillisch AG was established in 1997, with Hans Jochen Drillisch, Marc Brucherseifer and Nico Forster identified in historical accounts as founders of that company. The early business did not own a nationwide mobile network. It bought handsets and network capacity from operators and resold them to private customers, combining devices with special tariff packages. The company completed an initial public offering in 1998. It also obtained a fixed-line licence that year and began offering internet-by-call services in 1999. The fixed-line licence was sold to Finnish operator Elisa in 2000, after which the business placed greater emphasis on mobile internet and online services. It also experimented with web and WAP content, including the Acoona search service and the acquisition of Finnish WAP specialist Open-Net Oy. Drillisch continued to develop its mobile-service activities through subsidiaries. In 2004, Alphatel and Victorvox began marketing UMTS products using Vodafone’s network. The group acquired Telco Services in 2007, adding more than 300,000 customers, and acquired control of eteleon e-solutions in 2009. Eteleon strengthened the group’s internet-based marketing and online distribution and was associated with brands including discoTEL and DeutschlandSIM. Between 2007 and 2013, Drillisch was involved in an unsuccessful attempt, together with United Internet, to acquire and reorganize parts of Freenet. The companies established MSP Holding and accumulated a significant Freenet position, but negotiations to acquire Freenet’s mobile division ended without a transaction. Drillisch gradually reduced its Freenet stake and exited most of the investment by 2013. A significant regulatory opportunity arose from the 2014 approval of the Telefónica–E-Plus merger. As part of the remedies, Drillisch obtained wholesale access to a portion of Telefónica’s German network capacity. The arrangement made the company a major mobile virtual network operator and supported expansion of brands distributed online and through retail. Drillisch also acquired Telefónica stores and partner shops, later associating much of the retail activity with Yourfone. Internal reorganizations consolidated several mobile-service operations, including Eteleon and MS Mobile Services, into the group’s principal operating companies. In 2015, United Internet acquired a controlling interest in Drillisch. The more extensive combination announced in 2017 transferred United Internet’s 1&1 telecommunications and DSL activities into Drillisch through capital measures. The resulting group united 1&1’s broadband and internet-service business with Drillisch’s mobile platform. Drillisch adopted the 1&1 Drillisch name in 2018 and entered both the MDAX and TecDAX index structure during that period. The corporate name was shortened to 1&1 AG in 2021. The company’s later strategy centered on building a fourth German mobile network. It acquired 5G spectrum in the 2019 auction and began deploying network infrastructure. The planned launch took longer than initially expected, requiring continued reliance on wholesale partners. 1&1 signed a roaming contract with Telefónica in 2021, then announced a long-term Vodafone Germany roaming partnership in 2023. The Vodafone arrangement was completed in 2024 and supports service continuity while the proprietary network expands. Today, 1&1 operates as a German telecommunications provider within the United Internet group. Its portfolio covers mobile and fixed connectivity, while related subsidiaries and group businesses provide online distribution, business communications, hosting, cloud and other internet infrastructure services. Its market position depends on the scale and quality of its own network, access to partner networks, regulatory conditions and competition from Telekom Deutschland, Telefónica Germany and Vodafone Germany.

1. 2024Vodafone national roaming arrangement finalized

   A finalized Vodafone Germany roaming agreement supplemented 1&1’s own mobile network during its rollout.

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2. 2021Corporate name becomes 1&1 AG

   The company adopted the shorter 1&1 AG name in June 2021.

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3. 20195G spectrum acquired

   1&1 acquired spectrum in the 3.5 GHz and 2.1 GHz bands and began the process of creating its own mobile network.

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4. 2018Name changes to 1&1 Drillisch AG

   The company changed its legal name from Drillisch Aktiengesellschaft to 1&1 Drillisch Aktiengesellschaft.

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5. 2015United Internet becomes majority shareholder

   United Internet acquired a controlling stake in Drillisch, later leading to the combination of the two groups’ telecommunications operations.

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6. 2014Telefónica–E-Plus merger remedies create wholesale opportunity

   Regulatory remedies opened access to a substantial share of Telefónica’s German mobile-network capacity for Drillisch.

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7. 2009Eteleon becomes a full subsidiary

   Drillisch completed the acquisition of eteleon e-solutions, strengthening online marketing and mobile-service distribution.

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8. 2000Strategic shift toward mobile internet

   After selling its landline licence to Elisa, the company emphasized mobile internet and online services.

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9. 1998Initial public offering

   The former Drillisch AG completed its initial public offering and received a landline licence.

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10. 1997Drillisch AG is established

    Drillisch AG was founded as the corporate vehicle for an expanding mobile-service and telecommunications business.

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11. 1988Corporate history begins

    The company’s documented corporate history traces back to telecommunications and internet-related activities established in the late 1980s.

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A German consumer and business telecommunications brand combining broadband, mobile connectivity and internet infrastructure services, with a strategic transition from reseller and wholesale dependence toward operation of its own mobile network.

• Fixed broadband accessFixed telecommunications

  1&1 sells fixed broadband packages in Germany, historically including DSL and increasingly fiber-related access. Delivery combines wholesale access with infrastructure associated with 1&1 Versatel and other network arrangements. Packages are marketed to households and, through related business offerings, to organizations requiring internet connectivity.

• Mobile communicationsMobile telecommunications

  The mobile portfolio includes voice, messaging and data tariffs sold under the 1&1 brand and affiliated online brands. Service has historically relied on Telefónica and Vodafone wholesale access while the company builds and operates its own network. The offering targets both mainstream consumers and price-sensitive online customers.

• 1&1 5G networkMobile network2019

  The 1&1 5G network is the company’s facilities-based mobile-network initiative. Following spectrum purchases in 2019, 1&1 began deploying its own network infrastructure. National roaming supplements coverage where the proprietary network is not yet available, allowing the brand to operate while construction continues.

• Domain registration and web hostingInternet infrastructure

  The wider 1&1 internet-service portfolio has included domain registration, website hosting, servers and related tools for individuals and businesses. These services support the creation and operation of websites and online applications and reflect the group’s origins as an internet-services provider rather than only a connectivity reseller.

• Cloud and server servicesCloud computing

  Cloud storage, server and related infrastructure services complement 1&1’s connectivity products. They are designed for customers needing online storage, hosting capacity or business internet infrastructure, although the precise product portfolio varies across 1&1 and United Internet operating units.

• 2023Long-term Vodafone roaming partnershipStrategy

  1&1 needed national coverage while its own mobile network remained under construction and announced a change from the previously expected Telefónica-centered arrangement.

  What changed. The company announced a long-term national-roaming partnership with Vodafone Germany, later finalized in 2024.

  Aftermath. Vodafone roaming provided coverage outside the growing 1&1 network and supported migration of customers during the transition to a network-operator model.

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• 2019Decision to build an own 5G mobile networkGeneration change

  The company had historically operated mainly through wholesale access and mobile virtual network arrangements. Spectrum acquisition offered a route to become a network operator.

  What changed. 1&1 acquired 50 MHz in the 3.5 GHz band and 2×10 MHz in the 2.1 GHz FDD band and began planning its own 5G network.

  Aftermath. Network deployment took longer than initially planned, making roaming and wholesale access important complements during the rollout.

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• 2017Combination with United Internet telecommunications operationsM&A

  United Internet already controlled Drillisch and also owned the 1&1 broadband and telecommunications activities. The groups sought to combine the businesses to create a larger integrated mobile and fixed-line operator.

  What changed. United Internet transferred its 1&1 telecommunications and DSL activities into Drillisch through capital measures, resulting in United Internet holding a majority of the enlarged company.

  Aftermath. The transaction created the corporate platform that later became 1&1 AG and combined 1&1 broadband capabilities with Drillisch’s mobile-service customer base.

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• 2011Dispute over prepaid-connection commissionsControversy

  Deutsche Telekom terminated its cooperation with Drillisch after alleging that a subsidiary had activated tens of thousands of prepaid connections without genuine customers. Drillisch rejected the allegations and maintained that its contractual obligations had been met. The parties settled their contractual and civil dispute in March 2012, and criminal proceedings against the company’s board and executive team were later discontinued.

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• 2024Vodafone roaming arrangement is finalized

  The Vodafone agreement was finalized, allowing 1&1 customers to use Vodafone’s network in locations where 1&1’s own network was unavailable.

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• 20231&1 announces long-term roaming partnership with Vodafone Germany

  1&1 announced a new long-term roaming arrangement with Vodafone Germany, replacing the expected central role of the earlier Telefónica agreement.

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• 20211&1 and Telefónica agree national roaming

  1&1 announced a national-roaming agreement with Telefónica Germany to supplement its planned own mobile network.

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• 20191&1 obtains spectrum in Germany’s 5G auction

  The company acquired spectrum in the 3.5 GHz and 2.1 GHz bands to support construction of its own mobile network.

  Product launchRegulation
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• 2018Company adopts the 1&1 Drillisch name

  Drillisch Aktiengesellschaft changed its corporate name to 1&1 Drillisch Aktiengesellschaft after the United Internet transaction.

  Leadership changeOther
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• 2017United Internet and Drillisch announce combination of telecommunications businesses

  The companies announced a transaction under which United Internet would acquire control of Drillisch and contribute its 1&1 telecommunications operations.

  M&A
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• 2015United Internet becomes majority shareholder of Drillisch

  United Internet announced the acquisition of approximately 20.7% of Drillisch, making it the company’s majority shareholder after regulatory approval.

  M&AOther
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1. 1&1 AG
2. 1&1 AG official website
3. United Internet AG