Vodafone & Vantage Towers Face Scrutiny Over Delays Harming 1&1's Market Entry, Says German Competition Authority

Key Takeaways

• The Delay Dilemma: Vodafone and Vantage Towers have faced accusations of delaying the provision of antenna sites to 1&1, preventing the company from building its mobile network and entering the market as a competitor.
• Strategic Delays?: The Bundeskartellamt suspects the delays may have been a deliberate move by Vodafone to weaken 1&1's position, particularly ahead of upcoming spectrum auctions.
• Regulatory Pressure: Despite negotiations with Vodafone, the Bundeskartellamt remains unsatisfied with proposed solutions, leaving the door open for further regulatory actions.
• What’s at Stake for 1&1?: The delays have put 1&1's ability to compete at risk, making the outcome of this investigation crucial for its future in the German mobile market.

Deep Dive

The Bundeskartellamt, the country’s competition watchdog, has raised serious concerns over Vodafone and its subsidiary Vantage Towers for allegedly obstructing 1&1’s attempt to enter the market as a fourth mobile operator. The issue revolves around significant delays in providing antenna sites to 1&1—delays that, according to the Bundeskartellamt’s preliminary findings, are having a severe impact on 1&1’s ability to compete.

It all started back in 2021 when Vodafone’s Vantage Towers agreed to provide 1&1 with a number of antenna sites essential to its network build-out. Yet, here we are in 2025, and 1&1 still has access to only a fraction of those promised sites. Meanwhile, Vodafone has made substantial progress in expanding and upgrading its own network, including those very sites intended for 1&1’s use.

“The delay in the contractually agreed provision of sites is an anti-competitive impediment to 1&1’s market entry as a fourth network operator,” Andreas Mundt, President of the Bundeskartellamt, said. The regulator's preliminary assessment suggests that Vodafone and Vantage Towers had multiple opportunities to avoid the delays—options that, if acted upon, could have prevented the negative impact on competition in the market.

What makes this case even more interesting is the suspicion that the delays weren’t simply the result of miscommunication or logistical hiccups. The Bundeskartellamt hints at a more strategic motive: the possibility that Vodafone deliberately delayed the provision of these sites to weaken 1&1’s competitive position, particularly in the run-up to critical spectrum auctions. The idea is that Vodafone, which continues to control many of the antenna sites in question, may have seen the delay as a way to keep a fourth competitor from entering the market too quickly.

Vodafone, however, has faced increasing pressure from the Bundeskartellamt since late 2023 to address these concerns. Yet, the company’s proposed solutions haven’t been enough to resolve the situation. The competition authority now seems ready to take more forceful action, potentially ordering Vodafone and Vantage Towers to provide the sites within three years, an ultimatum that could have significant consequences for the companies involved.

For 1&1, this investigation could be a game-changer. The delays in securing the antenna sites have already had a substantial impact on its ability to roll out its own network, threatening its chances of competing on an even footing with Vodafone and other established players in the market.

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