Under the long-term agreement, 1 & 1 Drillisch will no longer continue its price review processes and on contractual basis, Telefónica Deutschland secures long-term revenue streams.
For an initial term of five years, 1 & 1 Drillisch has the option to extend the partnership until mid-2029, after which a further extension of up to five years is possible by negotiation.
“The long-term continuation of our partnership through the National Roaming Agreement, which has now been signed as planned, ensures planning security,” said Markus Haas, CEO of Telefónica Deutschland.
“With the significant proceeds from the agreement, we will continue to strengthen our O2 network and accelerate our expansion again. The agreement also ensures that our network investments in rural areas will pay for themselves much faster than previously planned.”
The move comes as it is expected to see significant growth in mobile traffic in the Telefónica Deutschland network. As such the price structure of the NRA are derived from the MBA MVNO contract that was inked in 2020 and is essentially a combination of unit prices and pre-determined purchase volumes.
In addition to this, in the future 1 & 1 Drillisch can reduce or increase the purchase volume several times a year within contractually defined limits, as well as implementing a price review mechanism once a year.
The NRA includes 2G, 3G and 4G network coverage, while MBA MVNO services continue to include the available 2G, 3G, 4G and 5G network coverage from Telefónica Deutschland.
After the 1 & 1 Drillisch existing customers are migrated to the new 1 & 1 Drillisch network, they will receive 5G connectivity exclusively via the 1 & 1 Drillisch 5G network.
Lastly, the national roaming and MBA MVNO services will run in parallel until the existing customer migration of 1 & 1 Drillisch has been completed. The commercial terms set out in the NRA apply to both services.
