In the rapidly evolving world of telecommunications, Vodafone and 1&1 ‘s partnership marks a significant milestone. This long-term, national roaming agreement is set to reshape the mobile network landscape in Germany, Europe’s largest economy.

Vodafone, a global leader in telecommunications, has entered into an exclusive national roaming partnership with 1&1, the mobile phone operation of German internet provider United Internet. This groundbreaking deal will provide 5G mobile coverage to 1&1’s customers, a significant step forward in the company’s ambitious plans to build a fourth mobile network.

Vodafone & 1&1: 18-Year Deal Boosts Stocks

The partnership, which is expected to last for 18 years, will commence in the second half of 2024. The wholesale costs in the agreement will be indexed to Vodafone’s mobile network cost to account for inflation and technological developments. This strategic move is expected to be cashflow accretive for Vodafone from its 2026 financial year.

The news of this partnership was met with enthusiasm in the stock market. Shares in Vodafone rose by 3% in London following the announcement, while shares in 1&1 surged by 15%, marking its biggest one-day gain since 2008. However, the news negatively impacted shares in Telefonica Deutschland, a competitor in the German market. Shares in Telefonica Deutschland’s parent company, Telefonica, slumped more than 7% in Madrid.

Margherita Della Valle, the new Chief Executive of Vodafone, is leading a turnaround of the group. The company aims to improve performance in Germany, its largest market, where it has lost customers in recent years. This partnership with 1&1 is a significant step in that direction.

Reshaping Germany’s Telecom Landscape

The Vodafone and 1&1 partnership is a testament to the dynamic nature of the telecommunications industry. As companies strive to provide advanced services and solutions to their customers, such strategic alliances are likely to become increasingly common. This deal not only provides 1&1 customers with access to Vodafone’s extensive 5G network but also strengthens Vodafone’s position in the German market.

In conclusion, the exclusive national roaming partnership between Vodafone and 1&1 is a significant development in the telecommunications industry. It promises to provide advanced mobile services to customers and reshape the mobile network landscape in Germany.