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1&1 defies rivals with rapid growth in Germany's mobile market

A legal war over frequencies won't slow 1&1's rise. How a scrappy newcomer forced Germany's telecom giants to cut prices—and rethink their dominance.

, and Administrator

2026 March 21 . 9:09 AM

1 min read

The image shows an old map of the city of Wien, Germany, with text written on it. The map is... — The image shows an old map of the city of Wien, Germany, with text written on it. The map is detailed and shows the various cities, towns, and other geographical features of the area. The text on the map provides additional information about the city, such as its population, roads, and landmarks.

1&1 CEO Dommermuth Rules Out Sale to Telefónica - 1&1 defies rivals with rapid growth in Germany's mobile market

Ralph Dommermuth, founder of 1&1, has dismissed speculation about selling the company. Instead, he remains focused on expanding Germany's fourth mobile network. His legal battle with the Federal Network Agency over low-band frequencies continues, as he challenges decisions favouring established operators.

The arrival of 1&1 in 2021 has shaken up the market, pushing prices down and forcing rivals to adapt.

Since launching its network in October 2021, 1&1 has grown its market share from under 5% to around 12-15% by early 2026. This rapid rise contrasts with the stable or slightly declining shares of Deutsche Telekom (35-38%), Vodafone (28-30%), and Telefónica O2 (25-27%). The shift comes from aggressive pricing and steady network expansion.

By the end of 2025, 1&1's coverage reached 27% of German households—exceeding the regulator's 25% target. The company now aims for 35% coverage by the end of 2026. Dommermuth has also signalled openness to cooperation, such as sharing mobile towers in rural areas, to speed up rollout.

At the heart of the dispute is Dommermuth's claim that extending low-band frequencies to existing operators was unlawful. He argues this move unfairly advantages competitors and has taken legal action against the Federal Network Agency.

The legal fight over frequency allocation remains unresolved. Meanwhile, 1&1's expansion has already cut costs for consumers and reshaped the market. With further growth planned, the company's impact on Germany's telecoms sector looks set to deepen.