Freenet AG’s Strategic Expansion in the German Mobile Market

Freenet AG, the German wireless telecommunication provider listed on Xetra with a market capitalization of approximately €3.16 billion, has announced a significant expansion of its operations through the acquisition of the German subsidiary of Swiss mobile operator Mobilezone. The deal, valued at roughly €230 million, is slated for completion in the fourth quarter of 2025.

Transaction Details

  • Target: mobilezone Deutschland GmbH, the German arm of the Swiss retailer‑based mobile carrier Mobilezone Holding AG.
  • Purchase Price: €230 million, covering 100 % of the shares in mobilezone Deutschland and its operational subsidiaries in Cologne and Bochum.
  • Strategic Assets: The transaction includes well‑known brand names such as Sparhandy, Deinhandy, and Handystar, which are established retail channels for mobile tariffs and devices.

Market Impact

The acquisition is expected to deepen Freenet’s footprint in the German mobile market, which is dominated by the likes of Vodafone, Deutsche Telekom, and Telefónica. By adding Mobilezone’s customer base and retail network, Freenet can:

  • Increase Subscriber Numbers: The combined customer base is projected to boost Freenet’s total subscriptions by an estimated 10–15 % in the first year post‑integration.
  • Enhance Distribution: Mobilezone’s strong retail presence, particularly in regional markets, provides Freenet with additional points of sale beyond its existing online and store channels.
  • Achieve Economies of Scale: Shared operational infrastructure, such as billing systems and customer support, is expected to reduce per‑unit costs.

Extended Partnership with MediaMarktSaturn

In tandem with the acquisition, Freenet has extended its exclusive partnership with MediaMarktSaturn for an additional five years. This long‑term agreement will:

  • Secure Retail Slots: Freenet will retain preferential placement of its devices and tariff offers in MediaMarktSaturn stores across Germany.
  • Strengthen Brand Visibility: The collaboration supports joint marketing initiatives, increasing brand awareness and customer acquisition.

Financial Outlook

While the acquisition requires a significant capital outlay, analysts anticipate that the incremental revenue from the newly acquired customer base and the enhanced distribution network will offset the initial cost within 18–24 months. The deal aligns with Freenet’s broader strategy to diversify beyond its core mobile services into ancillary digital lifestyle, energy, and television offerings.

Regulatory and Integration Considerations

The transaction has been approved by relevant regulatory bodies, with the expectation of a smooth integration process. Freenet’s management has outlined a phased approach:

  1. Data Migration: Transfer of customer data and billing systems will commence immediately after the regulatory sign‑off.
  2. Brand Harmonization: Mobilezone’s brand will be gradually aligned with Freenet’s brand architecture, ensuring consistency across all touchpoints.
  3. Operational Consolidation: Shared services, including customer support and network operations, will be integrated to achieve cost synergies.

Conclusion

Freenet AG’s acquisition of mobilezone Deutschland represents a calculated move to cement its position in the competitive German mobile market. Coupled with the extended alliance with MediaMarktSaturn, the company is poised to leverage a broader distribution network and a more diverse product portfolio, setting the stage for sustainable growth in the coming years.