DGAP-News:Telefónica Deutschland Holding AG complies with existing MBA MVNO agreement and merger control remedies

DGAP-News: Telefónica Deutschland Holding AG / Key word(s): Contract/Legal Matter Telefónica Deutschland Holding AG complies with existing MBA MVNO agreement and merger control remedies 20.09.2020 / 16:54 The issuer is solely responsible for the content of this announcement.

Munich, 20 September 2020 Telefónica Deutschland complies with existing MBA MVNO agreement and merger control remedies Telefónica Deutschland is offering services to 1&1 Drillisch on the back of the capacity-based MBA MVNO contract between the two parties. On 30 December 2019, this contract has been prolonged on request of 1&1 Drillisch for the five-year period starting 1 July 2020 until 30 June 2025. Telefónica Deutschland has invoiced the first months of the prolongation period in-line with the contractual terms and conditions; i.e. based on the average unitary price of the benchmark period with no price increase. The terms and conditions have been transparent for both parties at all times as the details of the pricing mechanism have been part of the merger approval documents for the acquisition of E-Plus in 2014 and have been confirmed by both parties in May 2017. As usual for this kind of commercially sensitive agreement, both parties have agreed strict confidentiality about details of the contract. Also, during the prolongation period 1&1 Drillisch has the contractual right to initiate reviews to ensure competitiveness of the pricing. With regards to the initiated price review 1, the appointed independent expert fully confirmed Telefónica Deutschland's MBA MVNO pricing on 19 December 2019. In-line with its contractual obligations, Telefónica Deutschland also cooperates with regards to the other ongoing price reviews. Two price reviews have been withdrawn by 1&1 Drillisch in April 2020. Independent from the price reviews and the regular invoicing process for provided services, Telefónica Deutschland is negotiating a national roaming agreement with 1&1 Drillisch under the so-called MNO Remedy. During this process, Telefónica Deutschland has made competitive and reasonable national roaming offers. Telefónica Deutschland strongly rejects any allegations and indications by 1&1 Drillisch that Telefónica Deutschland would not fulfil its legal obligations and reserves all its rights. Telefónica Deutschland confirms its FY20 guidance and midterm outlook while continuously monitoring and analysing the COVID-19 environment. 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 ir-deutschland@telefonica.com

20.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 50 80992 München Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1133983 MDAX TecDAX End of News DGAP News Service

1133983 20.09.2020