The United Internet subsidiary wants to expand its 5G network in Germany together with the Japanese technology group. And the company is also otherwise optimistic.
The telecommunications provider 1 & 1 is serious about building its 5G mobile network.
The United Internet subsidiary in Maintal announced that Europe’s first fully virtualized mobile network based on the open “Open RAN” standard is to be created together with the Japanese Internet company Rakuten.
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 to break down technological barriers that have previously sealed off the market. The aim of the new open standard is to make components of cellular networks compatible across manufacturers. “Open RAN” is a type of architecture that allows operators to use accessories from different providers. So far there have only been closed systems here.
United Internet CEO Ralph Dommermuth told the “Handelsblatt” that he hoped through “Open RAN” for low operating costs: “We will be able to operate the network with 50 employees because it is fully automated.”
While Telekom, Vodafone and Telefónica have already started expanding their network, United Internet is still in the planning phase. According to “Handelsblatt”, Dommermuth justified this with the negotiations for “national roaming” – while the company is setting up its own network, it must first use the capacities of another mobile phone provider.
For 2021, 1 & 1 is now more optimistic after a good first half of the year. For the full year, the management board is now expecting operating earnings before interest, taxes, depreciation and amortization (Ebitda) of around 670 million euros, announced the United Internet subsidiary. Previously, the team around CEO Dommermuth had promised 20 million euros less.
The new outlook for operating profit does not yet include the out-of-period income from the signing of the national roaming agreement with Telefónica Deutschland in the amount of 39.4 million euros. Sales should continue to be around 3.1 billion euros.
In the first half of the year, 1 & 1 achieved sales of 1.9 billion euros, 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. The operating result for the first half of the year excluding income relating to other periods rose by 2 percent to EUR 336.1 million.
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