What is Brief History of 1&1 Company?

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What is the history of the 1&1 company?

Founded in 1988, the company began its journey as 1&1 EDV-Marketing GmbH, focusing on marketing services for IT and software companies. Over the decades, it has evolved significantly, transforming into a major telecommunications provider in Germany.

From its early days in marketing, the company has undergone a remarkable transformation, expanding its offerings to become a leader in high-speed internet and mobile communications. This evolution showcases a strategic vision that has consistently adapted to the changing technological landscape.

The 1&1 company history is a fascinating narrative of growth and innovation. Established in 1988, its initial focus was on IT marketing, laying the groundwork for future expansion. A key milestone in its evolution was the strategic move into web hosting, marking the early history of 1&1 hosting. This expansion was crucial for its development and laid the foundation for what would become a significant part of its business. The company's journey also includes the history of 1&1 domain registration, a service that has grown in importance over the years. As the company grew, it also experienced significant company acquisitions history, further solidifying its market position. The history of 1&1 data centers is also a testament to its investment in infrastructure to support its expanding services. The company's growth strategy history has been marked by continuous development and adaptation. The 1&1 company name change history reflects its evolving identity and broader service portfolio. The impact on the web hosting industry has been substantial, with the company consistently pushing boundaries. Understanding the 1&1 company timeline reveals a consistent pattern of strategic development and market leadership.

By the end of Q1 2025, the company reported a substantial 16.35 million customer contracts. This impressive figure includes 12.42 million mobile internet contracts and 3.93 million broadband connections, highlighting its extensive reach in the telecommunications market. In 2024, the company achieved revenues of €4.06 billion, demonstrating its strong financial performance and market presence. As of July 21, 2025, its market capitalization stood at €3.26 billion, underscoring its significant economic value. The company's workforce comprises over 3,000 employees, who contribute to its ongoing success and innovation.

The company's commitment to technological advancement is evident in its pioneering work with Open RAN technology. In 2024, it launched Europe's first fully virtualized 5G mobile network using this innovative approach. This initiative positions the company at the forefront of next-generation mobile network development. The company's strategic expansion also includes its international presence, with a significant focus on its web hosting services, which are well-represented by the 1&1 BCG Matrix. The IONOS company background is integral to understanding this aspect of its business, as it represents a key brand under the company's umbrella. The IONOS by 1&1 history details the growth and development of this important service. The question of how did 1&1 become IONOS is central to understanding its brand evolution and market strategy. The early history of 1&1 hosting provides context for its current leadership in the digital services sector.

The 1&1 company history began in 1988 when Ralph Dommermuth, alongside Wendelin Abresch, established 1&1 EDV-Marketing GmbH. Based in Montabaur, Germany, Dommermuth, who had a background in banking, initially focused on providing structured marketing services. His early efforts were directed towards smaller software companies, and he later expanded his client base to include major technology firms like IBM and Microsoft. This initial business model centered on marketing services, and it started to evolve as the internet's presence grew throughout the 1990s.

As the digital landscape rapidly expanded, Dommermuth made a strategic pivot, shifting the company's direction from marketing for others to developing its own internet services and cultivating direct relationships with customers. A significant early development was the creation of its own internet access service. This move positioned 1&1 as a direct competitor to established providers such as T-Online. While specific details about the initial funding for this strategic shift are not widely publicized, the company's agility in adapting and investing in its own internet infrastructure was crucial for its subsequent growth. The economic and cultural environment in Germany during the late 1980s and early 1990s, marked by the emergence and swift expansion of the IT and internet sectors, provided a supportive environment for 1&1's entrepreneurial journey.

This foundational period set the stage for what would become a significant player in the web hosting industry. The early history of 1&1 hosting demonstrates a clear vision for leveraging emerging technologies and building a customer-centric business. The 1&1 founding story is one of strategic adaptation and forward-thinking investment in the burgeoning digital age.

The Genesis of 1&1

Founded in 1988 by Ralph Dommermuth and Wendelin Abresch, 1&1 EDV-Marketing GmbH initially focused on marketing services for software providers.

• Established in Montabaur, Germany.
• Ralph Dommermuth's banking background influenced early strategy.
• Expanded services to include major tech companies like IBM and Microsoft.
• Strategic shift towards own internet services in the 1990s.

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The early growth of the 1&1 company history was characterized by a strategic shift from marketing services to a strong focus on internet and telecommunications. A significant moment in the 1&1 founding occurred in 1998 when it became the first internet company to be listed on the Frankfurt Stock Exchange. This public offering, which raised approximately $60 million, fueled the expansion of 1&1 Internet into a broader group of internet companies through strategic acquisitions, including Schlund+Partner.

Strategic Diversification and IPO Success

In 1998, the company made its debut on the Frankfurt Stock Exchange, a landmark event for an internet firm at the time. The capital raised, around $60 million, was crucial for its ambitious expansion plans. This funding enabled the acquisition of key players like Schlund+Partner, solidifying its position in the burgeoning internet sector and marking a significant step in the 1&1 company timeline.

Infrastructure Development and Service Expansion

The early years saw the establishment of the first data center in Karlsruhe, a foundational element for its internet services. Alongside this, the company launched innovative offerings such as internet-by-call access and web hosting under the 'Puretec' brand. The introduction of email and messaging services through GMX further diversified its portfolio, contributing to the early history of 1&1 hosting.

International Expansion and Corporate Restructuring

The 1&1 company international expansion began in earnest with operations starting in the United Kingdom in 2000 and expanding to the United States by 2003. This global reach was supported by a significant corporate restructuring in 2000, which saw the company renamed United Internet AG, operating as a holding company. The 1&1 brand continued its focus on internet access products, showcasing its evolving business model.

Entry into DSL Market and Customer Growth

A pivotal moment in the 1&1 evolution was its entry into the German DSL market in 2004, coinciding with the launch of DSL telephony via Voice over IP (VoIP). This strategic move was bolstered by a DSL resale agreement with Deutsche Telekom, enabling the company to offer comprehensive broadband services. By the end of 2024, the company had achieved a substantial customer base of 16.39 million contracts, reflecting its successful growth strategy and its impact on the web hosting industry.

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The 1&1 company history is marked by a series of strategic advancements and significant undertakings in the telecommunications sector. A pivotal moment was the company's successful bid in the 2019 5G frequency auction, which set the stage for developing Europe's first fully virtualized 5G mobile network utilizing Open RAN technology. This approach, differing from conventional network architectures, aims to create a cloud-native, independent, and real-time application-ready network. The company introduced its '5G at home' fixed wireless access service in December 2022 and activated mobile services on its new network in December 2023. This was followed by the commencement of the largest migration in German mobile communications history in January 2024, with an average of up to 50,000 customers transitioning to the new 1&1 5G network daily.

A key innovation for the company was its commitment to Open RAN technology, aiming for a more flexible and cloud-native network infrastructure. This strategy is designed to foster digital sovereignty and build a robust partner ecosystem for its Open RAN components.

Open RAN 5G Network

The company's development of Europe's first fully virtualized 5G mobile network based on Open RAN technology represents a significant technological leap.

5G Fixed Wireless Access

The introduction of '5G at home' in late 2022 provided a new avenue for delivering high-speed internet services.

Large-Scale Customer Migration

The company orchestrated the largest migration in German mobile communications history, showcasing its operational capabilities.

The ambitious rollout of the new mobile network presented considerable challenges, including delays in network construction and a temporary mobile network outage in May 2024. This outage led to an increase in contract terminations and temporarily halted customer migrations due to under-dimensioned network components, resulting in higher-than-anticipated start-up costs that impacted group earnings in 2024.

Network Buildout Delays

The company experienced setbacks in its planned network expansion timeline.

Temporary Network Outage

A service interruption in May 2024 led to customer churn and operational adjustments.

Increased Start-up Costs

Capacity constraints and network under-dimensioning resulted in higher initial operational expenses for the mobile network.

National Roaming Agreements

Strategic agreements with Telefónica and Vodafone were established to ensure comprehensive network coverage during the expansion phase.

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The journey of the 1&1 company, a significant player in the digital services landscape, began with its founding in 1988 by Ralph Dommermuth as 1&1 EDV-Marketing GmbH. This marked the initial step in what would become a long and transformative history. A major milestone occurred in 1998 when 1&1 became the first internet company to be listed on the Frankfurt Stock Exchange, signaling its early success and ambition. The year 2000 saw a significant restructuring, leading to the renaming of the holding company to United Internet AG, a move that broadened its corporate scope. The company continued its expansion into new markets, notably entering the German DSL market in 2004 and introducing DSL telephony via VoIP, demonstrating its commitment to evolving telecommunications services. Further innovation followed in 2010 with the signing of Germany's first MVNO contract with Vodafone, enabling the launch of its own mobile internet rates. The relationship with United Internet AG deepened in 2017 when it became the majority owner of 1&1 AG, then known as 1&1 Drillisch AG. A pivotal moment for its future infrastructure was the successful participation in the 2019 5G frequency auction, which laid the essential groundwork for its own mobile network. The company officially changed its name from 1&1 Drillisch AG to 1&1 AG in June 2021. Demonstrating its commitment to its own network, 1&1 launched '5G at home' fixed wireless access services in December 2022. The company then activated mobile services on its new 5G network in December 2023, leveraging national roaming. This was followed by the commencement of the largest customer migration in German mobile communications history to its new 5G network in January 2024. Despite a temporary mobile network outage in May 2024 that impacted churn and migration efforts, the company resumed planned customer migration in Q4 2024 after addressing network component issues. By July 2025, the company reported a market capitalization of €3.26 billion.

Completing the 5G Network Migration

The primary focus for 1&1 is the full migration of all its mobile customers to its new 5G network by the close of 2025. This significant undertaking aims to consolidate its customer base onto its proprietary infrastructure. This transition is a crucial step in realizing the full potential of its network investments and solidifying its position in the mobile market.

Expanding 5G Coverage and Technology Adoption

1&1 is actively expanding its fully virtualized 5G mobile network, which is built on Open RAN technology. The company aims to provide 5G services to a quarter of German households by the end of 2025 and expand this coverage to half of German households by the end of 2030. This strategic expansion leverages advanced technology to enhance service delivery and reach.

Financial Projections for 2025

For 2025, 1&1 anticipates a stable contract base and service revenues, projected to remain at approximately €3.30 billion, mirroring the 2024 figures. However, EBITDA is expected to see a decrease of around 3.4%, falling to approximately €571 million. This projected decrease is primarily attributed to the cessation of a national roaming agreement and the transition to new partnerships, impacting operational costs and revenue streams.

Increased Investment in Network Development

The investment volume, measured in cash capital expenditure (capex), is set to significantly increase in 2025, reaching approximately €450 million, a notable rise from €290.6 million in 2024. This substantial increase in investment underscores the company's commitment to the ongoing development and expansion of its 5G network infrastructure. These strategic investments are vital for future growth and service enhancement, reflecting the Competitors Landscape of 1&1 and the company's drive for digital sovereignty.

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