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Digi Communication: Rapid Growth and Concerns for Major Telecom Operators in Spain

Digi Communication continued to grow, in the first half of this year, with an unusual speed in the Spanish market, which worries the major telecom operators – Telefónica, Orange, MasMóvil and Vodafone. In the first half of the year, Digi gained over 400,000 new customers, and the data suggests that the rush of subscribers to the Romanian company will continue, against the background of prices characterized as low-cost. Industry sources say in Spanish media that if the big companies continue to lose market share, they will have to cut back on infrastructure investment.

Digi applies in Spain the business model successfully used in Romania, in the last almost 30 years.

Advanced data now reveals that Digi continues to experience strong customer growth in both fixed and mobile segments. Specifically, the operator added almost 350,000 customers to the mobile segment and more than 88,000 customers to fiber optic subscriptions. These figures contrast with the decline recorded by large companies.

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At the opposite pole is Vodafone, which lost 80,000 subscribers on the fixed segment and more than 270,000 customers on the mobile service segment, from January to June. The British operator is in a transition process and losing market share, repositioning all its products and looking for a financial balance.

In the case of Telefónica, the numbers are not positive, but the company is holding up commercially thanks to the launch of MiMovistar. The mobile segment lost 68,000 subscribers, while fiber subscribers fell by 115,000, according to ADSLZone.

Orange is holding on in the fixed segment thanks to the good commercial performance of Love offers. On the mobile segment, the French company lost just over 65,000 customers.

For its part, MásMóvil has lost commercial strength in recent quarters and is awaiting the completion of its merger with Orange to work on a joint strategy.

Under these conditions, the operators are very clear: “We will reduce infrastructure investments!”.

The growth of Digi leaves no one indifferent. With thousands of employees, the Romanian operator not only does not accompany its competitors in raising prices, but even offers more for the same price. Sources in the Spanish industry note that Digi is not focused on profitability and is only looking at the rapid growth of the number of subscribers. Be that as it may, it is shown that Digi has become the “main enemy” of the four big companies on the Spanish market and everything indicates that we will soon see offers aimed at the customers of the Romanian operator.

2023-07-11 03:06:06
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