Telecommunications Tug-of-War: Who Will Reign Supreme?
Ah, the world of telecommunications—the only industry where people will go to war over a saved euro! And it seems there’s some healthy competition brewing in the low-cost sector, like a cooking show gone wrong where the ingredients include Vodafone, Zegona, and a sprinkle of Finetwork. This is the latest episode of “As the Price Falls,” where we see lower rates serve up a buffet of options for cash-conscious consumers. So, grab a comfy chair, a snack, and let’s dive into the juicy details!
The Royal Rumble of Rates
Our headliners, Zegona and Vodafone, have decided that much like any self-respecting soap opera, they simply cannot stay out of the spotlight. Zegona has appeared on stage waving its metaphorical sword, proclaiming that it’s here to shake things up. Their strategy with Lowi has been nothing short of magnificent. The aggressive strategy has dethroned Digi as the reigning champion of cheapness—at least, for now.
But wait, what’s this? Digi isn’t going down without a fight! No, sir! They’ve launched a new price cut that could make even the stingiest Scrooge crack a smile. We’re talking about a fiber rate that promises your internet to be faster than you can say “low-cost” with 300 Mbps for the delightful price of just ten euros! That’s right, ten! And if you fancy something to make your mobile experience even sweeter? They’ve got fiber and 30GB of mobile for only 15 euros a month!
Not Your Average Bargain Basement
“Bargain hunters” might sound like a sporting team, but in this arena, it simply means everyone wants to pay less for more. But while Digi’s pulling the old “look over here, shiny new rates!” routine, let’s not forget the looming shadow of their liquidity from selling off part of their network. It’s a classic case of “I just sold my old car to buy an even snazzier one!” Will this turn out to be a smart move, or is it a financial game of hot potato?
Emailing Your Operator for Fun and Profit?
According to a recent study by the illustrious Oliver Wyman, a whopping 20% of Spaniards are plotting their escape from their current operators over the next two years. It’s like a mass exodus—but instead of pharaohs, we’ve got mobile networks! Currently, 72% of Spanish customers are shackled to traditional operators, but here’s the kicker—56% of these noble souls would happily switch to something that doesn’t make them feel like they’re paying for medieval phone service. Dear giants of the sector like Masorange and Telefónica, perhaps it’s time to reconsider your strategies before your loyalists flee to the new kids on the block!
The Race Is On!
The low-cost telecommunication scene is vibrant, perhaps a bit excessively so, much like a Friday night in an all-you-can-eat buffet. Despite the supposed rise of promotional offers and reduced prices, the actual number of users switching operators is not seeing the outrageously wild numbers from just a year or two ago. However, low-cost providers continue thriving like sunflowers in a crop field, quietly biding their time until the big fishes start feeling too bloated to swim!
So, as we look ahead, one can’t help but wonder—who will wear the crown in this ever-shifting landscape? Will Digi reclaim its throne, or does Finetwork have a few tricks up its sleeve? So many questions, and only time will tell. Until then, dear reader, if you spy a good deal, grab it tighter than Rick Gervais at an awards show. The only thing louder than our laughter will be the sound of prices plummeting!
Stay tuned, folks, for the next episode of “As Prices Fall,” where we’ll continue to watch these telecommunications titans battle over who can be the cheapest while keeping our phones from turning into bricks. Cheers to lower rates and better connection!
Updated Monday, October 14, 2024 – 16:17
Telecommunications competition in the low-cost sector has grown in recent months with the emergence of Zegona as owner of Vodafone and his strategy to Lowi and the aggressiveness of Finetworktwo proposals that had dethroned Digi as the cheapest option on the market… until now.
The company has launched this Tuesday new rates in which it lowers its prices to recover this throne, especially with an aggressive proposal of a fiber rate with 300 Mbps for just ten euros with three months of stay. Added to this, perhaps what aspires to be the star rate of the portfolio: fiber and 30 Gb of mobile from 15 euros per month.
The adjustment of rates Digi It comes at a time when the group has liquidity to make a promotional effort after selling part of its network to the wholesale operator Onivia. However, new sales with these rates, which are accompanied by an increase in mobile rate data throughout the portfolio, will continue to narrow the company’s margins.
This continued to be the operator that gained the most clients month after month, but its growth was beginning to be hindered by the push of Finetwork y Lowi in a market that also, and despite the promotional rebound, is not experiencing as high a number of portability as it was one or two years ago, but where low cost remains thriving.
According to a study published a week ago by the consulting firm Oliver Wymanmore than 20% of Spaniards plan to change operators in the next two years and low-cost operators are better positioned to take their share of the pie.
According to the report, Spain is a country in which 72% of customers are with traditional operators, but of them 56% would be willing to switch to low cost, a sign that large groups such as Masorange, Telefónica or Vodafone They must also dedicate efforts to continue protecting their portfolios.
/s3/static.nrc.nl/images/gn4/stripped/data123022095-c90ba1.jpg?fit=300%2C300&ssl=1)
