1&1 CEO Dommermuth Rules Out Sale to Telefónica - 1&1 defies giants with Open-RAN expansion in Germany's mobile market

Germany's fourth mobile network, 1&1, has made steady progress since its launch around 2024. Using Open-RAN technology, the company now covers over a quarter of German households. Despite fierce competition from major players like Deutsche Telekom, Vodafone and Telefónica O2, its expansion continues with ambitious targets for 2026.

The network's growth comes alongside legal disputes and rejected takeover speculation, as founder Ralph Dommermuth remains firmly in charge.

1&1 entered the market as Germany's fourth mobile operator, introducing Open-RAN technology to challenge established networks. By the end of 2025, it had exceeded the Federal Network Agency's 25% coverage target, reaching 27% of households. The company now aims for 35% coverage by the end of 2026.

To support its rollout, 1&1 partnered with Vodafone for interim coverage while investing heavily—265 million euros in 2025 alone. These efforts have helped it attract around 12.5 million mobile users, though it still trails Telefónica's 18 million contract customers. The arrival of a fourth operator has also driven down prices for consumers.

However, challenges remain. Dommermuth is locked in a legal battle with the Federal Network Agency over the extension of low-band frequencies, which he argues were unlawfully granted to rivals. He insists these frequencies are vital for indoor coverage and accuses regulators of unfairly excluding 1&1.

Despite industry speculation, Dommermuth has repeatedly dismissed rumours of selling the company. Instead, he remains focused on expansion, even expressing openness to cooperation with competitors—such as sharing mobile towers in rural areas—to speed up network growth.

Competition from Deutsche Telekom, Vodafone and Telefónica O2 stays intense. Yet 1&1's investments and coverage gains suggest it is carving out a stronger position in the market.

1&1's network now covers more than a quarter of German households, with plans to extend this further by 2026. The company's legal fight over low-band frequencies and its refusal to sell indicate a long-term commitment to growth. For consumers, the result has been lower prices and more choice in a previously dominated market.