A fourth telecom operator has launched in Belgium, causing Proximus shares to fall by 7%.
Digi is a Romanian telecom operator and that will offer "unmatched" prices and a "cheaper, simpler and faster" service to Belgian consumers when it launched on Wednesday.
The company's much-touted arrival in Belgium will help level the playing field. Belgium has long had just three large telecoms providers – Proximus, Orange and Telenet – that dominate the market. Consumer analysis firm Test Achats has welcomed Digi's launch and affordable pricing.
"As consumers, we have paid too much for our internet and telephony for far too long because the market was too concentrated," Test Achats spokesperson Ortwin Huysmans told VRT. "We hope that the competitive price will stimulate competition."
Digi group CEO Valentin Popoviciu noted that markets with four mobile operators have average prices over 50% lower for mobile services and 40% lower for internet services compared to markets with three operators.
The newcomer has already impacted other telecom providers. Proximus shares lost more than 7% on the markets on Wednesday. Shares were valued at €5.14 at around 12:45, their lowest since the beginning of the year.
What's on offer
Digi offers a €5 package including calls, SMS, and 15GB of mobile internet per month, available nationwide. According to the company, the offer provides sufficient data for nearly 75% of Belgians to stay connected without worrying about data limits.
The service provider has "borrowed" Proximus antennas around the country until it develops its own. The first 5G antennas are expected to be activated in early 2025.
Credit: Belga/AFP
At the press conference launch, Digi compared its prices with other major operators: €14 at Orange for 8GB, over €16 at Proximus and Telenet for 5GB, and €18 at VOO for 15GB. Low-cost brands were not included in the comparison.
Its internet service is currently only available in Cureghem (Anderlecht) but will expand to other Brussels communes and then to other urban spaces in Belgium in 2025.
Digi claims its internet prices are much lower than competitors: €34 for 100 Mbps at Telenet, about €40 at VOO (200 Mbps) and Proximus (100 Mbps), and €45 at Orange (200 Mbps), again excluding low-cost brands. A TV package is not currently on offer but is promised "soon."
The Digi group employs 22,000 people in Romania, Spain, Portugal and Italy.
