Movistar is going through a key moment in its growth strategy. The company, which has led the telecommunications sector in Spain for years, is exploring options to keep growing in the country. Meanwhile, it aims to make the leap into the European market with a solid base.
However, what seemed like a promising possibility is fading away. Digi, one of the most attractive names for a possible consolidation, seems to be closing the door to any kind of agreement.
Movistar must move quickly
In recent months, much has been speculated about Movistar's future and the alliances it could establish to keep competing at the highest level. Analysts are clear about it. If it wants to consolidate in a big way, it needs Vodafone or Digi.
Both are key players in the telecommunications market in Spain. MasOrange is out of that operation, as its recent merger has allowed it to strengthen its position without needing to seek new agreements.
Nevertheless, the option of Digi is moving further away, reports Adsl Zone. The recent annual report of the operator, corresponding to 2024, makes its intentions clear. It intends to continue growing independently.
The Romanian company has managed to surpass a 10% market share in both fixed broadband and mobile telephony in Spain. They propose to keep going down that path.
They understand that Spain offers "future growth opportunities," as well as "attractive opportunities." This shows that the Spanish market is an absolute priority for the company. However, they also recognize that it is a very competitive market, and for this reason, they will keep a low-price strategy.
Interestingly, Digi has an agreement with Movistar to use part of its fiber optic infrastructure. However, its intention is to reduce this dependency, and for this, they are strengthening their own network. They already reach 12 million homes in Spain, of which three million were added only in 2024.
Movistar must look elsewhere
Digi already operates in other countries, but Spain, along with Romania, has become its main focus. The company expects its activity in the Spanish market to continue standing out compared to its international operations. All this makes it clear that Digi is not interested in selling or merging with Movistar.
Its vision is that of an independent operator, with a clear and ambitious roadmap. So, for Movistar, this is difficult news to digest. Its desire to consolidate with Digi as an ally is crumbling.
The company now faces a harsh reality. If it wants to stay strong against MasOrange and Digi's unstoppable growth, it will have to rethink its strategy.