1&1 Bundle
What is the history of 1&1?
1&1 AG, founded in 1988, has become a major player in Germany's telecom industry. Its journey began with IT marketing services, quickly shifting to internet services.
The company's evolution includes launching Europe's first Open RAN 5G mobile network. This innovation highlights its commitment to advancing telecommunications technology.
From its start as 1&1 EDV Marketing GmbH, the company has grown significantly.
It now offers a wide range of services, including high-speed broadband, mobile plans, and cloud solutions for both individuals and businesses in Germany. As of mid-2025, the company continues its 5G network rollout, solidifying its market position.
Understanding the company's strategic moves, like its 1&1 PESTEL Analysis, provides insight into its sustained growth and market adaptation.
What is the 1&1 Founding Story?
The 1&1 company history began in 1988 when Ralph Dommermuth established 1&1 EDV Marketing GmbH in Montabaur, Germany. Initially, the company focused on providing marketing services to software developers and IT firms, capitalizing on the growing tech sector's need for specialized support.
The Genesis of 1&1
The 1&1 company history traces its origins to 1988, founded by Ralph Dommermuth. Its initial focus was on marketing services for the burgeoning IT industry.
- Founded in 1988 by Ralph Dommermuth.
- Initial business: Marketing services for software and IT companies.
- Strategic pivot towards internet services in the 1990s.
- Evolution into a key internet service provider.
As the internet's popularity surged in the 1990s, the company underwent a significant transformation. The founder, Ralph Dommermuth, strategically shifted the business model, moving away from third-party marketing to concentrate on developing its own internet services and cultivating direct customer relationships. This pivotal change marked the company's transition into becoming a dedicated internet service provider, laying the groundwork for its future expansion. The name '1&1' was adopted as the company began offering its own internet access, signaling its competitive entry into the telecommunications market. This evolution highlights a key milestone in the 1&1 company history, demonstrating adaptability and foresight in a rapidly changing technological landscape. Understanding this early phase is crucial for grasping the Target Market of 1&1 and its subsequent growth trajectory.
1&1 SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
What Drove the Early Growth of 1&1?
The early history of 1&1 is marked by rapid diversification and strategic market entries. From its initial focus, the company quickly expanded its service portfolio, laying the groundwork for significant future growth.
IPO and Capital Infusion
A major milestone in the 1&1 company history was its listing on the Frankfurt Stock Exchange in March 1998. This public offering provided crucial capital for its ambitious expansion plans.
Telecommunications Expansion
In 1998, 1&1 secured a landline license, and by 1999, it launched internet-by-call access, directly challenging established providers. The company also introduced DSL rates for business clients, supporting small businesses and freelancers.
Mobile Services and Holding Structure
A pivotal move was the first MVNO contract with Vodafone, allowing 1&1 to offer its own mobile internet. In 2000, 1&1 AG & CO. KGaA became United Internet AG, a holding company that continued to operate internet services under the 1&1 brand.
Strategic Acquisitions and Reorganization
United Internet AG strengthened its market position by acquiring stakes in companies like Versatel. By 2017, 1&1 Telecommunication SE merged with Drillisch AG, forming the current 1&1 AG, with United Internet holding a majority stake. This period saw consistent customer growth, reaching approximately 15.4 million customer contracts by the end of 2021, with revenues of €3.91 billion. As of H1 2025, the company reported 16.33 million customer contracts and service revenues of €1,646.5 million.
1&1 PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
What are the key Milestones in 1&1 history?
The 1&1 company history is marked by significant advancements and strategic maneuvers. A pivotal moment was the 2019 5G frequency auction win, enabling the construction of its own mobile network. This led to the launch of Europe's first fully virtualized 5G mobile network using Open RAN technology. By June 2025, the network had over 10 million users.
| Year | Milestone |
|---|---|
| 2019 | Participated in the 5G frequency auction, securing spectrum for its own mobile network. |
| 2022 | Launched its '5G at home' fixed wireless access product in December. |
| 2023 | Activated mobile services on its new 5G network in December. |
| 2024 | Began migration of approximately 12 million existing mobile customers to its new network in January. |
| June 2025 | Surpassed 10 million users on its O-RAN 5G network. |
| End of 2025 | Expected completion of the migration of existing mobile customers to the new network. |
Innovations include the development and launch of Europe's first fully virtualized 5G mobile network utilizing Open RAN technology, a significant step towards greater competition in the telecommunications sector. The company also introduced its '5G at home' fixed wireless access product, expanding its service offerings.
Virtualized 5G Network
Pioneered Europe's first fully virtualized 5G mobile network, leveraging Open RAN technology for enhanced flexibility and innovation.
5G at Home Service
Launched '5G at home' fixed wireless access, providing a new connectivity option for consumers.
Open RAN Technology
Employed innovative Open RAN technology in its 5G network build-out, promoting an open and competitive ecosystem.
Challenges faced by the company include delays in antenna site provision, impacting infrastructure partners and leading to investigations by the Bundeskartellamt in 2024. A temporary network outage in May 2024 also affected sales and led to an increase in contract terminations.
Network Rollout Delays
Experienced significant delays in securing antenna sites, creating challenges with infrastructure partners and impacting network deployment timelines.
Customer Migration Costs
The migration of millions of existing mobile customers to the new network resulted in higher-than-anticipated start-up costs and temporary customer churn.
Network Outage Impact
A temporary outage of the mobile network in May 2024 negatively impacted sales and earnings, leading to an increase in contract terminations.
1&1 Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
What is the Timeline of Key Events for 1&1?
The 1&1 company history is a story of consistent growth and strategic adaptation in the telecommunications sector. From its founding in 1988, the company has evolved significantly, marked by key milestones in its expansion and technological development. This brief history of 1&1 traces its journey from a small marketing firm to a major player in the German digital landscape.
| Year | Key Event |
|---|---|
| 1988 | Ralph Dommermuth founded 1&1 EDV Marketing GmbH in Montabaur, marking the inception of the 1&1 company history. |
| 1998 | 1&1 became a publicly listed company and secured a landline license, signaling its entry into broader telecommunications services. |
| 2000 | 1&1 AG & CO. KGaA was renamed United Internet AG, establishing a holding structure for the 1&1 brand and its associated ventures. |
| 2017 | 1&1 Telecommunication SE merged with Drillisch AG, forming the current 1&1 AG with United Internet AG as the majority shareholder. |
| 2019 | The company successfully bid for 5G frequencies, a crucial step towards building its own mobile network infrastructure. |
| December 2022 | 1&1 launched '5G at home,' its first fixed wireless access service utilizing the 1&1 Open RAN network. |
| December 2023 | 1&1 activated mobile services on its new fully virtualized 5G network, officially becoming Germany's fourth mobile network operator. |
| January 2024 | The mass migration of existing mobile customers to the new 1&1 network commenced. |
| Summer 2024 | A national roaming partnership with Vodafone began, enhancing 5G mobile coverage for 1&1 customers. |
| End of 2024 | 1&1 reported 16.39 million customer contracts and service revenue of €3.30 billion. |
| Q1 2025 | Customer contracts stood at 16.35 million, with service revenues reaching €821.9 million. |
| H1 2025 | Customer contracts were 16.33 million, service revenues totaled €1,646.5 million, and over 10 million customers were using the 1&1 mobile network. |
| August 2025 | 1&1 announced further fiber-optic expansion, making Gigabit connections available in areas like Hannover-Leinhausen. |
5G Network Expansion
1&1 aims to cover 25% of German households with its 5G network by the end of 2025 and expand this to 50% by 2030. This ambitious rollout is central to the company's future strategy.
Financial Projections for 2025
For fiscal year 2025, 1&1 forecasts stable service revenue at €3.303 billion, mirroring 2024 figures. However, EBITDA is expected to decline to approximately €545 million due to network build-out and migration costs.
Investment in Infrastructure
The company plans a significant increase in investment volume (cash capex) to around €450 million in 2025. This capital will fuel the expansion of its Open RAN 5G network and fiber-optic infrastructure.
Customer Migration and Network Development
A key strategic goal is the completion of customer migration to its own network by the end of 2025. This move, alongside ongoing network development, positions 1&1 for sustained growth and competitive positioning in the evolving digital landscape. For more on the company's journey, see this Brief History of 1&1.
1&1 Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Competitive Landscape of 1&1 Company?
- What is Growth Strategy and Future Prospects of 1&1 Company?
- How Does 1&1 Company Work?
- What is Sales and Marketing Strategy of 1&1 Company?
- What are Mission Vision & Core Values of 1&1 Company?
- Who Owns 1&1 Company?
- What is Customer Demographics and Target Market of 1&1 Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.