The report adds that a potential takeover of 1&1 by Telefónica could also be considered as part of the ongoing talks
In sum – what to know:
Telefónica eyes renewed cooperation – The operator is reportedly in talks with 1&1 to rebuild ties and strengthen competitiveness in the German market.
1&1 faces rollout setbacks – The carrier’s 5G buildout has lagged amid disputes with Vodafone and limited site deployment progress.
M&A potential down the road – A future Telefónica takeover of 1&1 is being discussed as a long-term strategic possibility.
Telefónica Germany is reportedly exploring ways to renew its partnership with mobile operator, 1&1, according to local press reports.
German newspaper Handelsblatt reported that Telefónica was seeking to strengthen its relationship with the United Group-owned telco after the recently announced departure of Markus Haas, the CEO of Telefónica Germany.
Sources cited by the newspaper said both companies have held early discussions about closer cooperation as they face growing competition from Deutsche Telekom and Vodafone Germany. The report adds that a potential takeover of 1&1 by Telefónica could also be considered.
1&1 has faced continued challenges in the deployment of its 5G network, which finally launched in 2023 following multiple delays. The operator acquired 5G spectrum licenses in 2019 to establish itself as Germany’s fourth mobile network operator.
However, the company later signed a 5G wholesale deal with Vodafone in 2023, ending its original partnership with Telefónica. Under that agreement, Vodafone provides mobile coverage for areas beyond 1&1’s network footprint, including 2G, 4G, and 5G services.
Despite the loss of this contract, the telco is now said to be pushing to rebuild ties with 1&1. Relations between 1&1 and Vodafone have been strained, with 1&1 accusing Vodafone and its tower subsidiary, Vantage Towers, of delaying its 5G rollout.
In early 2023, 1&1 publicly stated it was facing “ongoing obstacles to the rollout of its 5G mobile network resulting from actions by Vodafone.”
The German competition authority, Bundeskartellamt, later opened an investigation into 1&1’s complaints.
While 1&1 continues to expand its network, progress remains limited. As of June 2025, the operator had a total of 1,200 active antenna sites across Germany. According to estimates from New Street Research, 1&1 could reach about 12,500 sites by 2031 — still far below Telefónica’s current 28,000 antenna sites.
In June, 1&1 said it has surpassed 10 million users on its 5G network powered by Open RAN (O-RAN) technology.
