Already at the beginning of the year there were indications that the Federal Network Agency no longer wanted to look at the tragedy surrounding the development and expansion of the mobile network at 1&1. Now it has become known: The company is threatened with a sensitive fine.

Because meanwhile running a bug money procedure against 1&1. That reports that Online magazine finanzen.net and refers to a report by the dpa news agency. The dpa is therefore a letter from the Federal Network Agency, which shows the official opening of the procedure.

But what that means for 1&1 remains unclear for the time being. When the Federal Network Agency announced in January this year that the company would be audited, possible fines were already being raised.
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At that time, it was said that the Federal Network Agency was facing a fine of up to 50,000 euros per location. With almost 1,000 locations, that would be up to 50 million euros. However, not quite as high a sum is expected, but in any case a sensitive penalty. It is also still unclear when the investigations can be expected to be announced.

Who’s to blame?

The fact that the Federal Network Agency has now officially opened the procedure is possibly a great advantage for 1&1. Because now the company can submit a statement to the authorities and explain why the expansion was so greatly delayed. 1&1 had always emphasized that the expansion would be delayed by third parties. 1&1 CEO Ralph Dommermuth confirmed the few locations in January: “We missed our expansion target for 2022, which I find uncomfortable too.”

But the company is “anything but idle”. It is clear that 1&1 missed the goals of the expansion. As part of the frequency auction in 2019, the group committed to putting 1,000 radio sites with 5G technology into operation by the end of 2022. However, only the commissioning of five locations was confirmed.

Summary

  • 1&1 threatened sensitive fines
  • Federal Network Agency opens proceedings against 1&1
  • Penalty per location up to 50,000 euros
  • 1&1 can give an opinion
  • 1&1 missed expansion target for 2022
  • Mandatory commissioning of 1,000 radio sites by the end of 2022
  • Only the commissioning of five locations was confirmed

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