The company is expected to launch 5G services next year

Germany’s newest MVNO 1&1 Drillisch has published a strong financial report for the first half of 2019, with its chief exec saying that the company had "laid the cornerstone" to establish itself as a serious player in Germany’s 5G network landscape.

"We are in a good position to take the next steps in our company’s development and we are looking ahead to the future with confidence," said 1&1 Drillisch’s chief executive officer, Ralph Dommermuth, in a letter to the company’s shareholders.

1&1 Drillisch obtained €1.07 billion worth of spectrum at Germany’s recent 5G auction, picking up blocks in the 2GHz and 3.6GHz bands.

"The total hammer price amounted to about €1.07 billion, of which, in accordance with the terms and conditions of the auction, about €735 million for the blocks in the 3.6GHz range is due within 65 bank days of the award. Another approximately €335 million for the frequency blocks in the 2GHz range is due and payable by 30 June 2024 because this spectrum will not become available until January 2026," he added.

The company saw a strong performance in the first half of 2019, with revenues edging up by €6.6 million €1.825 billion. The number of subscriber contracts increased by 380,000 in the first hald of 2019, to stand at 13.92 million. 

1&1 Drillisch will join Deutsche Telekom, Vodafone and Telefonica Deutschland in offering 5G consumer services in Germany by 2020. 

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