Telecom company DIGI launches operations in Portugal
DIGI launched its operations in Portugal with competitive pricing from day one, severely disrupting the telecommunications market.
What?
On Monday, Romanian telecommunications company DIGI launched its commercial operations in Portugal.
The company offers a range of services for individual users, including fixed internet, mobile, TV, and landline services, allowing customers to create their own personalised packages.
There is no loyalty contract for mobile services and a maximum of three months for fixed internet, giving customers the freedom to leave at any time.
The entry of the new company into Portugal's telecoms market has already shaken up the sector, with social networks filling of favorable comparisons with other operators.
As a result, operator NOS’ share price fell 4.36% on Tuesday to four-month lows, with each share worth 3.40 euros. In terms of market capitalisation, this represented a loss of 79.85 million euros
Tell me more
Digi Communications has significantly disrupted the Portuguese market since its entry in 2020. Within just two and a half years, DIGI Portugal has built and developed a modern fiber optic infrastructure and a national mobile network from scratch, using state-of-the-art technologies to provide Portuguese consumers with high-quality solutions at the most affordable prices.
Offering low-cost packages with generous data allowances and competitive call rates, Digi catered to a price-sensitive market, especially appealing to young consumers and people looking for budget-friendly alternatives to existing providers.
The mobile service starts at €4 per month, the TV service costs €12, while fixed internet speeds start at 1 Gbps for €10, with plans for 10 Gbps (€15) later this year. An unlimited mobile internet package with TV package is available for €26. According to the operator, prices will not be subject to annual adjustments based on inflation.
The initial TV offer includes 60 channels, available via a set-top box, but will be expanded over time. Digi has already secured agreements to distribute channels from national broadcasters TVI and RTP but is yet to reach a contract with commercial broadcaster SIC. Additionally sports channels, such as SportTV and DAZN, will initially not be available. Digi advised that negotiations are ongoing with both SIC and the sports channels, but they are proving complex due to an “inflexible” stance by the TV rights holders. A mobile app for watching TV will be made available in the future.
Background
Digi Portugal’s Board of Directors consists of Valentin Popoviciu, CEO Digi Romania, Marius Varzaru, head of Digi’s Spanish operation, and Emil Grecu, who will serve as CEO of Digi Portugal.
Digi has so far invested €400 million in the Portuguese market, a figure that includes the acquisition of local telecom operator Nowo for €150 million.
Digi’s presence in Portugal marks another step in its expansion strategy across Europe, building on its successful operations in Romania, Italy, Spain and Belgium.
In a future phase, DIGI aims to diversify its portfolio with solutions targeted at the business segment.