DGAP-News: Telefónica Deutschland Holding AG: Independent expert intends to reject contribution of 1&1 Drillisch to Telefónica Deutschland's costs for the spectrum auction 2015

Munich, 27 May 2020

Independent expert intends to reject contribution of 1&1 Drillisch to Telefónica Deutschland's costs for the spectrum auction 2015

In an arbitration proceeding between Telefónica Deutschland and 1&1 Drillisch, the independent expert informed the parties today of the intention to reject Telefónica Deutschland's claim for a contribution of 1&1 Drillisch to the costs for the frequency usage rights from the German spectrum auction in 2015.

The intended decision of the independent expert - subject to possible changes in its final decision - therefore does not follow Telefónica Deutschland's rational. Telefónica Deutschland will analyse and comment in detail the draft decision of the independent expert.

The intended decision of the independent expert would have the positive effect of the price adjustment provision no longer applying to the full confirmation of the MBA MVNO pricing related to Price Review 1. Furthermore, Telefónica Deutschland is of the view that the by 1&1 Drillisch initiated Price Reviews 2 and 5 as well as the filing for arbitration with regards to the decision of Price Review 1 are unjustified.

Besides the arbitration proceeding, Telefónica Deutschland is pursuing other claims against wholesale partners in the mid double-digit million euro range.

Telefónica Deutschland confirms its financial year 2020 outlook as published in the 2019 Annual Financial Report while constantly monitoring and analysing the COVID-19 developments.

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 [email protected]