The telecommunications sector in Spain is experiencing moments of great tension. All eyes are on Movistar, which is reportedly preparing a strategic move of great impact. According to industry sources, the Spanish company is not only focused on continuing to lead the national market but also seeks to make the definitive leap to the European stage.
To achieve this, it needs to gain strength. The options on the table are not minor: Vodafone and Digi.
Although for weeks there has been a growing rumor of a possible purchase of Vodafone Spain by Movistar, the truth is that it is not the only move on the board. In Vodafone's environment, it is already perceived that Telefónica could be exploring alternatives. One of them is gaining strength every day: Digi, the low-cost operator.
Movistar doesn't rule out Digi
The option of Telefónica acquiring Digi has been considered for some time. This would mean a merger that would completely shake up the market.
If this operation were to be completed, we would be facing an explosive combination. On one hand, the solidity and experience of Movistar; on the other, the growth and aggressive rates of Digi. Together they could become absolute leaders of the sector both in Spain and in other European countries.
Currently, Telefónica remains the operator with the highest revenue in the country, reaching 12.791 billion euros in revenue last year. Meanwhile, Digi, although it plays in the low-cost field, is growing at an unstoppable pace. It is already the fourth operator in the country.
If the merger were completed, it is estimated that both companies would reach nearly 13.5 billion euros in annual revenue. This would place them in a privileged position in Europe.
As of today, MasOrange leads the market in the number of customers, with more than 33 million subscribers, compared to Telefónica's 22 million. But the possible addition of Digi to Movistar would quickly close the gap. Digi brings a growing customer base, especially in the price-sensitive segment.
Movistar would enter a market with much potential
Additionally, this hypothetical agreement would allow Telefónica to strengthen itself in the low-cost market. It is a field where its O2 brand has not managed to take off with the same strength. Digi stands out for having very competitive rates and great acceptance among users.
Its average revenue per user (ARPU) is just 8.7 euros, compared to Movistar's 90.7 euros. But the combination of both models would allow for optimized profits and expanded market share.
For the moment, there is no official confirmation of any of these operations. However, everything points to Movistar not having shown all its cards yet. At Vodafone, they already sense that the Digi alternative is very present, and that could completely change the ongoing negotiations.
What is clear is that Telefónica is preparing a key move to establish itself as the great telecommunications power in Europe.