How Does 1&1 Company Work?

As of June 30, 2025, the 1&1 mobile network served over 10 million customers. The company is actively migrating customers from previous wholesale agreements to its own infrastructure, aiming to enhance service quality and customer satisfaction. This strategic move is central to the 1&1 business model and its future growth.

• The company is transitioning up to 50,000 customers daily to its own network.
• This migration is expected to improve service quality and offer competitive pricing.
• The Open RAN technology allows for greater flexibility and reduced reliance on single vendors.
• The cloud-native core network is distributed across numerous edge data centers for low latency.

A significant strategic initiative involves migrating existing mobile customers to their proprietary 5G network. This transition, while incurring initial costs for network expansion and customer migration, is projected to yield cost efficiencies from 2026 onwards.

• Mobile internet contracts remained steady at 12.44 million by the end of H1 2025.
• Broadband contracts experienced a planned decrease, settling at 3.89 million.
• The 1&1 business model leverages both value and premium customer segments.
• The EBITDA for the 1&1 Mobile Network segment in H1 2025 was -€130.6 million due to these migration expenses.
• Understanding the 1&1 company's operational structure reveals a focus on long-term network investment.
• This strategic shift is a key aspect of how 1&1 company operations are evolving.
• For a deeper understanding of the company's guiding principles, explore the Mission, Vision & Core Values of 1&1.

1&1's competitive advantages are rooted in its strong brand, its unique Open RAN 5G network, and a comprehensive product portfolio. The Open RAN network provides technological independence and is optimized for real-time applications. This is complemented by the extensive fiber-optic network of 1&1 Versatel, offering high-speed broadband. The company also emphasizes award-winning 1&1 customer support, including features like 24-hour device replacement.

• Brand Strength: A well-established and recognized brand in the German market.
• Open RAN 5G Network: Technological independence and flexibility in network development.
• Fiber-Optic Integration: Leveraging a vast fiber network for high-speed broadband services.
• Customer Service: Commitment to high-quality customer support, enhancing loyalty.
• Network Expansion: Aiming for 25% population coverage by the end of 2025 and 50% by the end of 2030.

Understanding the 1&1 company's operational structure reveals a commitment to building and controlling its own infrastructure, a key aspect of how 1&1 hosting works for small businesses and larger enterprises alike. This strategic direction, detailed further in a Brief History of 1&1, positions the company for sustained growth and market differentiation.

The 1&1 company's operational structure is heavily focused on building out its proprietary 5G network using Open RAN technology. This strategic investment aims to reduce reliance on wholesale agreements and improve cost efficiency, a crucial aspect of the 1&1 business model. Understanding the Target Market of 1&1 reveals how these infrastructure developments cater to specific customer needs.

• Continued build-out and optimization of the Open RAN 5G network.
• Migration of all mobile customers to the company's own network by the end of 2025.
• Achieving 25% 5G population coverage by the end of 2025.
• Long-term goal of 50% 5G population coverage by 2030.