Belgium’s telecom market is undergoing significant transformation with the entrance of DIGI, which has taken bold steps as the fourth mobile network operator (MNO) following its recent launch of mobile and fixed services. This move is expected to escalate competition and lead to increased affordability for consumers, shifting the telecommunications dynamic from a three-player to a four-player structure.
DIGI, known for its disruptive strategies, is replicacing its successful model seen in Spain, eagerly entering the Belgian market with pricing aimed at capturing attention. Its mobile tariff starts at just €5 per month for 15 GB of data, paired with its fixed broadband offering priced at €10 per month for 500 Mbps of full-fibre connectivity. These aggressive pricing strategies mean DIGI is poised for rapid market share acquisition, but the competitive responses from existing players are set to create turbulence.
With the launch, DIGI also set ambitious goals for its network rollout, aiming for 30% 5G population coverage by 2025 and the establishment of 4,500 sites across Belgium by 2030. Key to its entry is the national roaming agreement struck with Proximus, Belgium’s largest mobile operator, which allows DIGI subscribers to use Proximus’ 4G network initially, as it works to deploy its own greenfield radio infrastructure.
According to reports, this agreement, which also includes plans for Proximus to decommission around 400 of its own mobile sites to facilitate DIGI's rollout, reflects the underlying competitive strategy DIGI is adopting. Proximus’ performance has been notable; it led the market with 4G download speeds of 55.68 Mbps during Q3 2024, as noted by Speedtest Intelligence. Still, it faced challenges with 4G availability, ranking third among the current providers with 81.07% coverage, trailing Telenet and Orange.
Despite DIGI’s reliance on Proximus’ network during its initial phase, the new operator is expected to redefine factors like speed and availability as it ramps up independent operations. Its exit strategy from dependency on Proximus hinges on the successful deployment of its infrastructure. Nevertheless, many are questioning whether DIGI’s strategy will significantly improve Belgium’s standing among its European neighbors, particularly since the country has historically lagged behind in 5G deployment.
DIGI is also heavily investing in fiber optic offerings, launching DIGI Fiber with speeds reaching up to 10 Gbps for as low as €20 per month. With this rollout, there are plans to reach two million households within two years, showcasing its ambition to disrupt the fixed broadband market as well. The median fixed network speed across Belgium was reported as 101.97 Mbps, underscoring the competitiveness of DIGI’s offering.
The emphasis on home network quality continues with DIGI’s plan to introduce Wi-Fi 6-capable customer premises equipment (CPE) as standard and the anticipated rollout of Wi-Fi 7 solutions for its premium service subscribers. This commitment echoes trends seen among leading fixed operators throughout Europe, who are investing heavily to differentiate their services based on quality of experience (QoE).
Nevertheless, market incumbents are bracing for intense competition as DIGI’s entry has already triggered price wars. Notably, Proximus took early defensive actions earlier this year, slashing dividends and entering various agreements to accelerate its fiber rollout. Recently, Orange struck back by matching DIGI’s mobile pricing with its own offers through its budget-focused sub-brand, Hey!, signaling the start of aggressive competition.
This shift is noteworthy as Belgium has historically reported some of the highest average revenue per user (ARPU) levels within Europe. Compared to competitors like the Netherlands and Germany, which reported lower ARPU levels, the Belgian telecom market has observed significant pricing pressure since DIGI's launch.
Indeed, this market shift toward affordability indicates potential risks for the existing telecom giants, who now face the dual challenge of maintaining profitability amid increased competition. There are concerns about whether DIGI's disruptive pricing can sustain without affecting service quality, leading to broader repercussions for the telecommunications sector.
Despite the uncertainty surrounding the price war it has initiated, DIGI's expansion strategy signals one of the most significant competitive incursions across European markets. Being at the forefront of the telecommunications revolution, DIGI’s measures—including its focus on operational efficiency and substantial investments—parallel the successful methods applied by other disruptors such as Iliad.
Operational efficiency has been central to DIGI’s identity, helping boost its revenues substantially, which ballooned from €624 million to €1.69 billion within the last decade. This level of success implies DIGI's disruptive model extends beyond pricing, emphasizing the need for industry players to innovate continuously or risk falling behind.
Whether DIGI's bold moves culminate in sustained growth or merely signal the beginning of an extended price war remains uncertain. Nevertheless, the company’s ambitious strategies, marked by aggressive pricing on mobile and fixed services, are certain to keep the Belgian telecom sector on its toes.
This development not only marks Hungary-based DIGI’s emergence within Belgium but also redefines competitive benchmarks for telecom offerings throughout Europe. The consequences of this entrenchment will undoubtedly reshape the market and potentially how consumers perceive telecommunications pricing across the continent.
