The telecommunications operator Digi announced this Monday, November 4, the beginning of the commercial offer in Portugal, focusing on the lack of loyalty in most contracts – loyalty will only be on fixed internet, within a maximum of three months -, no promotions and no prices linked to annual inflation.
Initially, fixed internet, mobile internet, TV services and fixed telephone services will also be available. In the presentation, the company says that customers will be able to create their own combination of services – for example, through a fixed internet and mobile service (mobile phone and internet on the phone), it also admits some limitations in the services provided.
Currently, the commercial offer is for residential customers only, but the company is considering an offer for business customers in the “second phase” of the operation in Portugal.
In mobile service will have the option of unlimited mobile data and national calls from seven euros per month but it is possible to drop up to five euros per month if the user has three or more telephone numbers. However, there will be some limits to coverage: 93% of the population is covered by 2G and 4G. 5G covers 40% of the population, but mainly in urban areas.
Already in a choice of mobile tariff with limited data prices start at four euros per month for 50 GB cumulative and unlimited calls, VAT included. In the option with 200 GB of accumulated mobile data, the monthly fee increases to R$9 per month.
Digi employees have criticized what they say “artificial barriers” regarding network coverage, especially regarding the authorization to enter the Lisbon Metro, despite the fact that negotiations “have been ongoing for a year”. It was also mentioned that the issue of electricity in accessing network sites is “overdue”. “These are artificial barriers that we don’t understand,” said Valentin Popoviciu, the Romanian group’s chief executive.
The initial fixed internet offer will start with a 1 Gbps service, but the aim is to provide speeds of up to 10 Gbps later this year. The 1 Gbps option will cost 10 euros per month, and in the future 10 Gbps speed the monthly fee will increase to 15 euros.
The TV service will cost 12 euros per month. Digi admits it will be limited at launch, with an offer of 60 channels “which is gradually taking shape,” according to Digi manager Valentin Popoviciu. There will be no sports channels in this offer yet. In this area, “the negotiations are quite rigid”, criticized the official. SIC channels will also not be available at the start of the offer, as discussions are ongoing.
Digi says TV negotiations continue and expects to be resolved “in the coming months”
<iframe class="wp-embedded-content" sandbox="allow-scripts allow-same-origin allow-top-navigation-by-user-activation" style="position: absolute; visibility: hidden;" title="“Digi diz que negociações com televisões continuam e espera que estejam resolvidas “nos próximos meses”” — Observador" src="https://observador.pt/2024/08/14/digi-diz-que-negociacoes-com-televisoes-continuam-e-espera-que-est estejam-resolvidas-nos-proximos-meses/embed/#?secret=RKOCqBx0jZ#?secret=KrRNMmLSxN" data-secret="KrRNMmLSxN" width="500" height="282" frameborder="0"
The landline service will cost one euro per month for calls charged by the minute and two euros per month for unlimited calls.
Starting this Tuesday, i location company, a offer configuratorwhere the consumer can choose the services they want to take. In one of the examples of package combinations made during the presentation, 1 Gbps fixed internet, 50 GB of mobile data and unlimited calls and TV service will cost 26 euros per month.
Digi is coming, we just don’t know when. Is the telecommunications market already on the move with the prospect of “competitive” prices appearing in Spain?
The operator operates in Romania, Italy and Spain, markets known for its lowest prices. He recently launched the offer in Belgium.
The company’s arrival in Portugal takes place on the back of the 5G auction, which ended in 2021. According to the deadlines defined within the auction, the company had until the end of November to start the commercial offer.
Romanian operator Digi arrives in Portugal on November 4
The Romanian operator swooped in and acquired Nowo for 150 million euros, a deal approved by the Competition Authority last month. In the presentation, he revealed that he invested 400 million euros in the Portuguese market, a value that already includes the acquisition of Nowo.
Digi goes on to buy Nowo for 150 million
During the presentation, Valentin Popoviciu said that the purchase of the former Cabovisão is a “milestone” for the entry into Portugal, as it will allow “to improve the team and have more spectrum in 5G”. “This gives us some advantage when we launch” in Portugal, he admitted.
So, at the beginning, Digi will work with a team of 800 people. Valentin Popoviciu indicated that the company has “no layoff plans” among the human resources that will be inherited from Nowo. As for the operator’s stores, which are distributed in different parts of the country, there will be “the same products and the same prices”.
Digi’s board in Portugal is made up of three foreign executives – Valentin Popoviciu, head of the Romanian group, Marius Varzaru, head of Digi’s Spanish operation, and Emil Grecu, who will take on the role of CEO of Digi Portugal.
This Monday, the day Digi revealed the offer, Miguel Almeida, Chief Executive Officer No. Business Journal and Lusa agency. To the Businesssaid that “Digi’s best feature is opacity”.
When asked about the statements of rival Nos, Valentin Popoviciu said he would not comment. “Usually we don’t answer. You can see from what we present today whether there is opacity or not”, referring to the commercial offer presented.
Interview between Time.news Editor and Telecom Expert
Time.news Editor (TNE): Welcome to Time.news, where we dive into the latest developments in the telecommunications industry. Today, we have the pleasure of speaking with Dr. Ana Pereira, an expert in telecom market strategies and consumer behavior. Ana, thank you for joining us!
Dr. Ana Pereira (AP): Thank you for having me! It’s a pleasure to be here.
TNE: Let’s get straight into it. Digi launched its commercial offer in Portugal just recently, focusing on a no-loyalty model and a transparent pricing structure. What are your thoughts on this approach, especially in a market that’s traditionally maintained loyalty contracts?
AP: Digi’s approach is quite innovative for the Portuguese market. The lack of long-term contracts and hidden promotions could disrupt the status quo. Customers generally appreciate transparency, and this flexibility allows them to customize their services without feeling locked in. This could significantly attract consumers who are frustrated with conventional operators.
TNE: You mentioned disruption. How do you think this will affect the competitive landscape in Portugal’s telecommunications sector?
AP: Digi’s entry with competitive pricing—like the mobile data plans starting at seven euros—could force established players to reassess their offerings. It may lead to a price war, which usually benefits consumers in the form of better rates and services. If Digi sticks to its guns regarding flexibility and pricing transparency, it could gain a considerable market share.
TNE: Speaking of pricing, the company’s fixed internet service starts at just ten euros for 1 Gbps. How significant is this price point in comparison to its competitors?
AP: That pricing is remarkable. The speed for that price is virtually unmatched in the current market. If Digi can maintain these rates while ensuring a quality service, this could change the service adoption curve profoundly. It might push competitors to lower their prices or enhance their offerings to maintain customer loyalty.
TNE: On that note, Digi’s coverage seems to have some limitations, especially regarding 5G availability. How important is network coverage for new customers?
AP: Network coverage is crucial. While the pricing may attract customers initially, the actual experience they have with services—including coverage quality—will determine customer retention. If Digi can’t deliver consistent service, especially in key areas, customers may quickly revert to established providers despite wanting lower prices.
TNE: And what about the complaints from Digi employees regarding “artificial barriers” like network access in areas such as the Lisbon Metro? How could this affect the company?
AP: Such issues could be detrimental. If internal frustrations about operational barriers impact service rollout, it may lead to delays or inconsistent service quality. It could also reflect poorly on the company’s commitment to resolving infrastructure issues. Employees are an integral part of the brand image, and discontent could eventually affect customer satisfaction.
TNE: Digi also mentioned plans to expand their offerings for business customers in the future. How significant is this segment compared to residential customers?
AP: The business telecom segment generally has higher profit margins than residential services. If Digi effectively taps into this market with high-quality services that cater to businesses’ specific needs, it could contribute significantly to their bottom line and establish them as a serious competitor.
TNE: Digi has also indicated ongoing negotiations to expand their TV service offerings, yet they’ve launched with a limited channel lineup. How might this impact customer acquisition?
AP: Customers often look for bundled services that include TV, especially sports channels. The current limitation might deter some potential customers. However, if they can effectively expand their channel offerings swiftly, they can enhance their competitiveness and appeal. It’s all about finding the right balance between what’s available at launch and what will come shortly after.
TNE: if you had to summarize Digi’s potential impact on the Portuguese telecommunications market moving forward, what would you say?
AP: Digi has the potential to shake things up significantly. With its consumer-friendly approach, competitive pricing, and tailored offerings, they could change consumer expectations in Portugal. However, the challenge will be maintaining service quality and expanding their offerings effectively. The coming months will be critical for them to establish themselves in this new market.
TNE: Thank you, Dr. Pereira, for your insights today. It will be interesting to see how this unfolds in the coming months!
AP: Thank you for having me! It’s an exciting time for the telecom sector in Portugal, and I’m looking forward to watching it develop.