Japanese Internet corporation
1 & 1 wants to build fast mobile network with Rakuten
Rakuten will be responsible for the overall performance of the 5G mobile network. 1 & 1 should get access to the control platform. Photo: Uli Deck / dpa
The United Internet subsidiary wants to expand its 5G network in Germany together with the Japanese technology group. And the company is also optimistic in other respects.
The telecommunications provider 1 & 1 is serious about building its 5G mobile network.
Together with the Japanese Internet company Rakuten, the first fully virtualized mobile network in Europe should be created on the basis of the Open RAN standard, the United Internet subsidiary in Maintal announced.
Specifically, Rakuten should install the active network components and be responsible for the overall performance of the network. 1 & 1 get access to the control platform. The construction of the 1&1 network should begin in the coming quarter.
“Open RAN” (Radio Access Network) promises the removal of technological barriers that have so far sealed off the market. The new open standard is intended to make components of mobile radio networks compatible across manufacturers. So, “Open RAN” is a kind of architecture that allows operators to use accessories from different vendors. So far, there are only closed systems here.
United Internet Group CEO Ralph Dommermuth told the “Handelsblatt”, he hopes by “Open RAN” on low operating costs: “We will be able to operate the network with 50 employees, because it works fully automated.»
While Telekom, Vodafone and Telefónica have already started the network expansion, United Internet is still in the planning phase. According to “Handelsblatt”, Dommermuth justified this with the negotiations about “national roaming” – while the company is building its own network, it must first use the capacities of another mobile operator.
For 2021, 1&1 is now more optimistic after a good first half of the year. For the full year, the Management Board now expects operating earnings before interest, taxes, depreciation and amortization (EBITDA) of around EUR 670 million, the United Internet subsidiary announced. Previously, the team led by Group CEO Dommermuth had promised 20 million euros less.
The new operating profit outlook does not yet include the non-accrual income of EUR 39.4 million from the signing of the national Roaming agreement with Telefónica Deutschland. Sales should continue to be around 3.1 billion euros.
In the first half of the year, 1&1 generated revenues of EUR 1.9 billion, a good 2.6 percent more than in the same period of the previous year. The company now has 15.11 million customer contracts, an increase of 280,000. Operating profit for the first half of the year excluding non-period income rose by 2 percent to EUR 336.1 million.
