Company Announcements

Munich, 17 December 2020

Independent expert confirms: Contribution of 1&1 Drillisch to costs for spectrum auction 2015 in the future possible

In the arbitration proceeding between Telefónica Deutschland and 1&1 Drillisch regarding 1&1 Drillisch's contribution to costs for the frequency usage rights from the 2015 spectrum auction, the independent expert confirmed in principle today his preliminary decision submitted on 8 October 2020.

While the expert opinion rejected a cost contribution for the period 2016-2020, it explicitly grants Telefónica Deutschland the right to request an annual review with regards to a contribution of 1&1 Drillisch to the 2015 spectrum auction costs on the basis of the expert opinion. This right applies to 2021 and subsequent years and allows to claim the full amount if valid. In addition and in favour of Telefónica Deutschland, the expert removed the previously declared reservation with regards to Price Review 1.

Telefónica Deutschland will carefully analyse the decision and reserves all its rights.

Furthermore, Telefónica Deutschland still considers Price Reviews 2, 5 and 6 initiated by 1&1 Drillisch as well as the filing for arbitration with regards to the decision of Price Review 1 to be unjustified in terms of content. These proceedings are independent of today's announcement.

More information:
Telefónica Deutschland
Investor Relations
Georg-Brauchle-Ring 50
D-80992 Munich
t +49 (0)89 2442-1010
f +49 (0)89 2442-2000
e ir-deutschland@telefonica.com