The German antitrust authority, BundesKartellAmt (BKartA), has accused Vodafone and its subsidiary, Vantage Towers, of intentionally obstructing the expansion of 1&1’s 5G network. In their recent announcement, BKartA alleged that these companies have not adhered to their agreements to provide access to numerous mobile sites essential for 1&1’s network.
Already back in 2019, 1&1 secured the 5G spectrum to establish its own network, aspiring to be the fourth major operator in Germany. By 2021, they reached an agreement with Vantage Towers to utilize up to 5,000 tower sites to expedite their network rollout. This agreement stipulated access to 3,800 sites by 2025. Unfortunately, as of late 2022, access was granted to just five sites, a shortfall leading 1&1 to file a complaint with BKartA.
This situation has allegedly handicapped 1&1’s competitiveness in the market. Andreas Mundt, President of BKartA, stated, “According to the information available to us at this stage, the delay and its negative effects on competition in the relevant markets could, and in view of the prohibition of abusive practices under competition law, should indeed have been avoided.” He emphasized that Vodafone and Vantage could have managed their expansion differently, perhaps by deferring Vodafone’s own network expansion in favor of fulfilling their obligations to 1&1.
The watchdog hinted at the possibility of enforcing compliance with their agreements, which includes making all pledged sites available within three years. It is currently evaluating the situation and the need for additional measures. Despite the allegations, Vodafone and Vantage Towers have a chance to present their explanations. A final decision is anticipated by mid-year.
