Digi squeezes the spanish market: aggressive pricing threatens telecom stability

DIGI’s relentless push on ultra-low-cost fiber and mobile plans is ripping a hole in the Spanish telecom landscape, forcing established players and smaller operators to scramble for survival.

A torrent of sub-$15 deals

The Romanian-originated operator has exploded to 10.8 million subscribers, rapidly overtaking rivals like Vodafone and Orange, fueled by a strategy that’s effectively cannibalizing the entire sector. Their pricing, starting at just €12 for a combined fiber and mobile bundle, has triggered a frantic response – and a serious legal challenge.

But it’s not just about the price. DIGI’s success stems from a brutally efficient operational model, something that legacy providers, burdened by infrastructure investments and regulatory complexities, simply can’t replicate. The sheer volume of new customers – a record number, according to recent reports – highlights the growing appetite for affordable connectivity in Spain.

Acutelan, a consortium of smaller Spanish operators, is pushing the National Communications Authority (CNMC) to investigate what they’re calling ‘unfair competition.’ They’ve filed a formal complaint, alleging that DIGI’s tactics are deliberately designed to undermine the viability of local competitors.

“They’re not simply offering lower prices,” explained Juan Antonio Rodríguez, president of Acutelan, during a recent press conference. “They’re systematically dismantling the existing market structure, forcing others to either match their unsustainable costs or face extinction.”

The industry is already admitting the damage. Local operators are reporting a significant outflow of customers, with DIGI routinely dominating portability figures. The problem isn’t just the price; it’s the perceived simplicity of DIGI’s offering – a stark contrast to the convoluted bundles and tiered pricing structures favored by the larger incumbents.

Movistar Plus+, meanwhile, is facing a separate legal battle, this time over the ability to block live sporting events – a move that underscores the broader power DIGI is wielding. The operator is accused of utilizing its competitive position to exert undue influence, effectively creating a digital chokehold on the market.

The core issue, according to Acutelan, is that DIGI is operating with a loss, sacrificing profitability to aggressively undercut the competition. This strategy, they argue, isn’t sustainable and ultimately harms the consumer by limiting choice. While a low price isn't inherently negative, the lack of a corresponding investment in network infrastructure raises serious concerns about long-term quality. The question isn’t if DIGI can maintain these rates, but at what cost to the wider telecom ecosystem.”