Telefónica Deutschland Holding AG: Telefónica Deutschland acquires 90 MHz spectrum in 5G spectrum auction
Munich, 12 June 2019
Telefónica Deutschland acquires 90 MHz spectrum in 5G spectrum auction
As part of the 5G frequency auction which just concluded in Germany, Telefónica Deutschland acquired a total of 90 MHz spectrum at a total cost of EUR 1.425 billion. The acquired spectrum breaks down as follows:
- 2 paired blocks in the 2.1 GHz band
- 7 unpaired blocks in the 3.6 GHz band
Including the spectrum already owned, Telefónica Deutschland now has mobile spectrum of ~310 MHz (through 2025) and thus a highly competitive frequency position overall.
The Federal Network Agency will formally allocate the spectrum with effect of 1 January 2021 for 1 block of the 2.1 GHz spectrum and 1 January 2026 for the other 1 block. The 3.6 GHz spectrum will be made available gradually over the next few years and fully from 2022 onwards. All of the acquired spectrum will mature in 2040.
Due to its physical propagation characteristics, the newly acquired spectrum will be initially used to supply urban areas and industrial sites with 5G, delivering high data rates and low latency times. 5G technology also enables much more effective capacity management, so that network performance and overall capacity will increase as the standard becomes more widespread.
Consumers will benefit from 5G as the availability of related devices increases in the market. Until then, German mobile customers will also benefit from improved mobile broadband coverage through the ongoing intensive rollout of 4G.
Already in 2018, Telefónica Deutschland completed its network consolidation and connected an additional 6,700 LTE stations; LTE population coverage stands now at around 90%. We intend to continue with our intense rollout effort with another 10,000 additional LTE sites by year-end 2019.
In addition, we will continue to roll out fibre in the backhaul by means of a variety of co-operations. We confirm our target of reaching ~70% of fibre penetration in the backhaul by 2022.
We fully expect to continue to benefit from our successful integration effort between 2015 and 2018. Having proven our execution ability, we look forward to building on these achievements and our established market position. We are now entering the next chapter of our transformation journey in the form of our Digital4Growth programme between 2019 and 2022. We will continue to work relentlessly to becoming Germany's Mobile Customer and Digital Champion.
Finally, we confirm our full-year outlook for 2019, our mid-term guidance including a Capex envelope of approximately EUR 1bn and our dividend policy of a high payout ratio to FCF.
Telefónica Deutschland Investor Relations Georg-Brauchle-Ring 50 D-80992 München t +49 (0)89 2442-1010 f +49 (0)89 2442-2000 e email@example.com
12.06.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 50 80992 München
Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 823607 MDAX TecDAX End of News DGAP News Service