Telefónica Deutschland CEO calls for German mobile market consolidation

Santiago Argelich Hesse, the new head of Telefónica Deutschland, has called for a consolidation of the German mobile network market, suggesting that four independent operators are unnecessary. Currently, the market is composed of Deutsche Telekom, Vodafone, Telefónica (O2), and 1&1.

Argelich Hesse characterized the existing four-network structure as ‘innovation- and investment-unfriendly,’ noting that no other large country maintains such a setup. While he acknowledged that high competition keeps consumer prices low, he argued that the current model forces companies to invest massive sums into frequencies, masts, and modern technology, which is difficult under current regulations.

He proposed that the market could be more efficient if consolidated into three providers. While there has been ongoing speculation regarding a potential merger between Telefónica Deutschland and 1&1, Argelich Hesse declined to comment on these rumors, and United Internet, the parent company of 1&1, has previously denied such claims.