E-Plus Gruppe

E-Plus Gruppe

The third largest telecom operator in Germany.

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DateInvestorsAmountRound

N/A

Acquisition

N/A

Seed

€8.6b

Valuation: €8.6b

Acquisition
Total Funding-
KPN
KPN(exited)
1stMOVER
1stMOVER(exited)
Notes (0)
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The E-Plus Gruppe, officially E-Plus Mobilfunk GmbH & Co. KG, was a significant player in the German telecommunications market, operating as the country's third-largest mobile network provider before its acquisition. Founded in 1992, the company was awarded Germany's first DCS-1800 license in 1993 and commenced network operations in 1994, challenging the existing duopoly of Telekom and Vodafone (then Mannesmann). The company's history is marked by several ownership changes. Initially a consortium, it was later majority-owned and then fully acquired by the Dutch telecommunications firm KPN in 2002. Under KPN's stewardship, E-Plus pursued a distinct market strategy focused on affordability and customer segmentation, which proved highly disruptive.

The core of E-Plus's business was providing mobile telecommunication services to private and business customers across Germany. A key element of its strategy from 2005 onwards was the pioneering of a multi-brand approach. Instead of a one-size-fits-all offering, E-Plus launched and acquired various brands to serve specific customer segments with tailored products. These included BASE, a flat-rate focused brand; Simyo and Blau Mobilfunk, which were early entrants in the no-frills online discount market; and Ay Yildiz, which catered to the Turkish community in Germany. This approach allowed E-Plus to effectively capture different niches within the broader mobile market. Revenue was generated through prepaid and postpaid mobile plans, which included voice telephony, SMS, and increasingly, mobile data services based on GPRS, UMTS, and LTE technologies. The company was instrumental in democratizing mobile communication in Germany by introducing innovations like prepaid cards, minute packages, and affordable all-net flat rates.

In a landmark deal that reshaped the German telecom landscape, Telefónica Deutschland Holding AG announced its intention to acquire E-Plus in July 2013. After receiving regulatory approval from the European Commission, the acquisition was completed on October 1, 2014, for approximately 8.6 billion euros. This merger created the largest mobile provider in Germany by customer numbers, combining Telefónica's O2 brand with the entire E-Plus brand portfolio. Following the acquisition, Thorsten Dirks, who had been CEO of E-Plus since 2007, became the CEO of the newly merged entity. The integration process involved the complex task of merging the two distinct mobile networks and consolidating the brand portfolio, with E-Plus and its associated brands eventually being phased into the O2 brand world. While the E-Plus brand itself was dissolved, its influence on the market through its multi-brand strategy and focus on competitive pricing left a lasting impact.

Keywords: E-Plus Gruppe, German mobile operator, KPN, Telefónica Deutschland, mobile network provider, telecommunications, multi-brand strategy, BASE, Simyo, Blau Mobilfunk, Ay Yildiz, prepaid tariffs, mobile data services, DCS-1800, UMTS, LTE, O2 merger, Thorsten Dirks, telecom acquisition, German mobile market, E-Netz

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