New Street: O2D (Reduce)/ 1&1 Drillisch (Buy): Revisiting the NRA economics - and we still see diverging fortunes
Given that O2D and 1&1 Drillisch have now agreed key NRA terms, we revisit our forecasts, and we still have a strong structural preference for 1&1 Drillisch, despite it being about to go into its network build phase. Longer-term this should lead to diverging growth prospects from Telefonica Deutschland, which will face headwinds from the loss of Drillisch revenues, or potential migration of the contract to another MNO, limiting longer-term growth.Telefonica Deutschland Holding is a telecommunication company. Co. offers its consumer retail and business customers postpaid and prepaid wireless communications products, along with wireless data services using Global Packet Radio Service, Universal Mobile Telecommunications System and Long Term Evolution technology as well as Digital Subscriber Line wireline telephony and high-speed internet services. Co. markets its products and its wireless and wireline communications products as well as services via the core brand O2. Co.'s secondary brands include the brands Fonic and netzclub. Co. also markets high-speed DSL internet access and wireline telephony.
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