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

The Spanish telecom market is undergoing a seismic shift, and the epicenter is Bucharest. DIGI, the Romanian-born operator, has surged past 10.8 million customers, securing a stunning fourth-place ranking and closing in on Vodafone – a feat that’s sending tremors through Telefónica and other established players. But the story isn't simply about market share; it’s about a rapidly evolving landscape and a looming question mark over customer retention.

The low-cost disruptor's slowdown

DIGI’s initial blitzkrieg, fueled by aggressively low tariffs, has undeniably rewritten the rules of engagement. The company's rapid ascent has caught the attention of the National Market Competition Commission (CNMC), though final figures are still pending. However, the velocity of that ascent appears to be moderating. While still the dominant force in porting – the process by which customers switch providers – DIGI's growth rate has slowed by 13% compared to the same period last year. They’ve pilfered 26,000 fewer mobile lines net from competitors than in previous quarters, a telling sign that the easy gains are diminishing.

This isn't a collapse, but a recalibration. The low-cost model, while effective in attracting customers, seems to struggle with keeping them. Many subscribers appear to sample DIGI’s offerings before migrating to alternative tariffs shortly thereafter – a clear retention challenge the company must address.

Movistar's counter-offensive and wi-fi woes

While DIGI wrestled with slowing growth, Telefónica (Movistar) seized the opportunity. The incumbent operator logged a net gain of 57,000 mobile lines via porting, more than doubling its gains from the previous year. But the victory is complicated by a broader issue Movistar has publicly acknowledged: performance problems with Wi-Fi 6 and 7 routers. Their explanation – a complex interplay of hardware and network configuration – left many customers frustrated, highlighting the ongoing technical hurdles in delivering seamless connectivity.

The numbers speak volumes: Movistar lost 17,000 internet customers in 2025, but gained 1,600 in the first quarter of 2026. This subtle shift, paired with DIGI’s decelerated expansion, suggests a potential stabilization of the market, albeit one where the competitive pressure remains intense.

Vodafone and masorange under pressure

The picture isn't rosy for everyone. Vodafone bled 94,000 mobile lines – more than double the losses of the previous year. MasOrange, Orange's Spanish subsidiary, fared even worse, shedding 170,000 mobile lines, the most significant losses in the sector. These figures underscore the disruptive impact of DIGI and the challenges faced by established operators in maintaining their customer base.

DIGI’s success isn't merely about undercutting prices; it’s about exploiting vulnerabilities in the existing infrastructure and service offerings. They’ve capitalized on customer dissatisfaction with larger providers, demonstrating that even a late entrant can carve out a significant market share.

But the quiet erosion of their customer base is a warning sign. As of today, DIGI stands as Spain's fastest-growing telecom, but its long-term viability hinges on transforming from a magnet for bargain hunters into a provider that fosters lasting loyalty. The battle for Spain's digital future is far from over.