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1&1:Quarterly Results/2024 Q4: Difference between revisions
→Q4 2024 Earnings Call Summary
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==== Spectrum ==== | ==== Spectrum ==== | ||
* D'Avis said '''they have a lease for the Telefonica spectrum two times 2 MHz which was part of the merger release. This lease ends this year and the regulator has said it will be continued to be leased for another 5 years. Since they already have a contract, prolonging it should be easy. However, the national roaming negotiations were supposed to be fast as well but took two and half years. In general, he is optimistic that this process will be fast''' (Q&A)'''.''' | * CFO Sascha D'Avis said '''they have a lease for the Telefonica spectrum two times 2 MHz which was part of the merger release. This lease ends this year and the regulator has said it will be continued to be leased for another 5 years. Since they already have a contract, prolonging it should be easy. However, the national roaming negotiations were supposed to be fast as well but took two and half years. In general, he is optimistic that this process will be fast''' (Q&A)'''.''' | ||
* D'Avis said '''negotiations for the low-band frequencies (700 MHz, 800 MHz, 900 MHz) will be tricky''' since the regulator said the incumbents will need to negotiate with 1&1 again. "Now it could be that in two weeks' time we get a good offer from them and that's it. However, my experience tells me that this is not what is going to happen," he said (Q&A). | * D'Avis said '''negotiations for the low-band frequencies (700 MHz, 800 MHz, 900 MHz) will be tricky''' since the regulator said the incumbents will need to negotiate with 1&1 again. "Now it could be that in two weeks' time we get a good offer from them and that's it. However, my experience tells me that this is not what is going to happen," he said (Q&A). | ||
* D'Avis said the '''costs for the frequencies are clear and that's what they will pay. However, the incumbents are likely to come up with many reasons disputing the price'''. "Let's say we need 20% of the surface, then the frequency may cost EUR10 million per year, just to say a number, then we should pay EUR2 million that would be fair. But who knows what the process is going to be like? We have competitors who will come up with 1,000 reasons why this is not possible. Maybe there is a hospital right where these frequencies are, or a senior citizen's home, and the senior citizens will need the frequencies. And if they can provide them to them, then they will have a problem with the network and so on," he said (Q&A). | * D'Avis said the '''costs for the frequencies are clear and that's what they will pay. However, the incumbents are likely to come up with many reasons disputing the price'''. "Let's say we need 20% of the surface, then the frequency may cost EUR10 million per year, just to say a number, then we should pay EUR2 million that would be fair. But who knows what the process is going to be like? We have competitors who will come up with 1,000 reasons why this is not possible. Maybe there is a hospital right where these frequencies are, or a senior citizen's home, and the senior citizens will need the frequencies. And if they can provide them to them, then they will have a problem with the network and so on," he said (Q&A). | ||
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==== Possibility of RAN sharing ==== | ==== Possibility of RAN sharing ==== | ||
* | * D'Avis said they still want to reach 25% and 50% coverage. But if there are opportunities to use RAN sharing, they will take them up as long as conditions are right. He said there are no offers for RAN sharing at the moment (Q&A) | ||
* Dommermuth said he '''can't imagine abandoning the network buildout even if they were to use RAN sharing'''. "I'm not imagining that we are no longer building any locations or any towers or whatever because we have a ranch sharing partner and use their sites, but yes, it might be, but it might also snow in December. I don't actually see any reason to believe that right now." (Q&A) | * Dommermuth said he '''can't imagine abandoning the network buildout even if they were to use RAN sharing'''. "I'm not imagining that we are no longer building any locations or any towers or whatever because we have a ranch sharing partner and use their sites, but yes, it might be, but it might also snow in December. I don't actually see any reason to believe that right now." (Q&A) | ||