Digi's ascent: how a romanian upstart shook up spain's telecoms

Spain’s telecom market is undergoing a seismic shift, and the epicenter is DIGI, a Romanian operator that’s rapidly ascended to become the country’s fourth-largest player. The company’s aggressive strategy of low-cost plans has triggered a wave of porting activity, leaving established giants scrambling to respond.

The portability wars: digi's dominance

The current landscape is a direct result of DIGI’s entry, sparking what industry analysts are calling the “portability wars.” DIGI has amassed over 10.8 million customers, closing in on Vodafone’s market share—a feat previously considered unthinkable for a relatively new entrant. While Telefónica (Movistar) and DIGI are both experiencing gains, the narrative is far more nuanced.

Movistar, traditionally the dominant force, is showing signs of recovery, adding a net 57,000 mobile lines this quarter, double the gains of the same period last year. This turnaround is largely attributed to improvements in their internet services, offsetting earlier losses of 17,000 customers in 2025.

But the real story is DIGI's continued momentum. Despite a slight deceleration in growth—a 13% drop compared to the previous year—the company continues to siphon customers from its rivals. The operator netted an additional 200,000 mobile lines between January and February, even while losing 26,000 net lines when considering both gains and losses. The sheer volume of porting activity reveals a deep dissatisfaction with existing providers and a willingness to embrace DIGI’s disruptive pricing model.

The retention challenge: digi's achilles' heel

However, DIGI's success isn't without its complications. While it excels at acquisition, the company faces a persistent challenge in customer retention. Many subscribers, lured by the initial low prices, defect to other providers after a few months. This churn rate, while not unusual in the low-cost sector, represents a significant hurdle to long-term sustainability.

Vodafone, meanwhile, is feeling the brunt of this trend, experiencing a steep net loss of 94,000 mobile lines. MasOrange is also struggling, shedding 170,000 mobile lines—a stark contrast to the aggressive gains of DIGI. Fixed-line porting is also on the rise, with DIGI capturing a significant portion of those transitions.

Movistar is attempting to counteract the customer exodus by aggressively tackling spam calls, neutralizing a staggering 15 million fraudulent calls monthly. This initiative, while commendable, may not be enough to stem the tide of customers seeking cheaper alternatives.

The data paints a clear picture: DIGI has capitalized on the vulnerabilities of its larger competitors, seizing an unprecedented opportunity in the Spanish market. The question now is not whether DIGI can maintain its growth trajectory, but whether it can solve its retention problem before the established players regroup and launch a counteroffensive. The next quarter’s figures will be crucial—they’ll reveal whether DIGI can transform its initial surge into lasting market dominance.