(@andrevme) on getquin

2Mon·

$UTDI (+0.8%) What potential does United Internet have in the long term? Dommermuth hasn't fallen on his head. He is planning his own 5G network and many other things. What else is possible?

2 Comments

Markus@financial_genius_20

2Mon

Planning is nice, he should get going. He has had 5G licenses for years and has only built a two to three-digit number of antennas so far. The rest runs via Telefonica, but he recently switched his network usage contract to Vodafone. The Federal Network Agency is also already angry, as almost all the requirements for network construction have so far been ignored. I don't have enough insight into other areas, but he also seems to rely a lot on using third-party infrastructure for fiber optics. In any case, I'm not convinced by United Internet's story.

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devnerd_daddy@devnerd_daddy

2Mon

Disclaimer: I am invested myself, was an employee, will soon be an employee again. None of the information here is insider information, it all comes from publicly available sources (magazines, interviews, annual reports, etc.).

One of the great strengths of UI is the strong synergy. What, synergy? What does UI actually consist of (just the big parts):
- 1&1 Versatel
- 1&1 Telecommunication
- Web.de
- GMX
- IONOS
- Strato

UI has been hosting servers for many decades and has a stable infrastructure with good redundancies. I've been able to see the data centers and the NOC and it's really impressive. Over the years, redundancies have been increased and infrastructure has been provided in strategic locations.

The Group has access to a huge fiber optic network via 1&1 Versatel. This enables the Group to cover the entire route from the customer to the server at low cost, especially in conurbations.

Antennas are currently looking weak, but let's not forget the ongoing proceedings regarding the Vantage Tower story. A complaint was promptly filed with the cartel office, but I suspect that after the deal with Vodafone, the matter will probably soon be off the table. Let's move on to the deal with Vodafone. The deal has massively pissed off Telefonica, given Vodafone breathing space and given 1&1 cheap access to 5G. This is primarily thanks to RD, who may not be a good technician but is a great businessman.

Incidentally, I see line rental as a major strength of UI. For many years, it has been basic business here to connect new upstream providers. The other big players also have to do this, but not to the same extent. This allows flexibility in negotiations.

The 5G model with open integration is UI's standard approach. There is still a lot of in-house construction and reliance on open source. In the long term, this makes you less dependent and reduces costs. I like to remind people here of the test victories in the fixed network, even though the lines are all leased. A lot of people asked why back then, but the point is simple: own, better software on the servers.

In short: I have used the massive losses of recent years to rebuild my position and I will continue to do so. We got rid of bad legacy assets, acquired sensible companies and, in my opinion, created a good starting position for growth.

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