1&1 Drillisch AG, through its subsidiary Drillisch Online GmbH, will lease spectrum from Telefónica Deutschland Holding AG for the build-out of its own 5G network.

The agreement involves two frequency blocks of 10 MHz each in the 2.6 GHz band, which will be available to the United Internet AG unit until Dec. 31, 2025.

1&1 Drillisch will use the frequencies rented from the Telefónica SA unit until its own frequency blocks in the 2 GHz range, which will not be operational until Jan. 1, 2026, can be used. The company acquired two frequency blocks of 10 MHz in the 2 GHz band and five frequency blocks of 10 MHz in the 3.6 GHz band during an auction in Germany.

The parties have signed the agreement, which remains subject to the approval of the Federal Network Agency.