Spectrum auction rules will facilitate the entry of a new fourth operator, which is intent on disrupting the sector
Digi set to enter the market next year
On 25 August 2023, Digi Belgium (Digi) – the joint venture between Belgian B2B operator Citymesh and Digi Communications – reached a national roaming agreement with former incumbent Proximus in order to enter the market next year. The agreement represents a significant milestone in Digi's go-to-market strategy, guaranteeing it a five-year access right to Proximus's mobile network. Digi will also acquire around 400 cell sites from Proximus within the next four years, helping to accelerate its own rollout plan. The sites will be transferred into InSky, the company responsible for deploying infrastructure for Digi and Citymesh.
Spectrum award facilitated the market entry
In June 2022, the BIPT concluded a multi-band auction, assigning new 5G spectrum (in the 700MHz and 3.6GHz bands), as well as existing 2G/3G frequencies (900MHz, 1800MHz, 2.1GHz). Five participants, including the three established mobile operators, took part, spending over €1.2bn (£1bn) in total. The Government’s auction rules reserved a package of spectrum to attract a new player, with the aim of diversifying the market and boosting competition. The EC has previously voiced concerns over the high concentration of Belgium’s mobile market and identified a risk that the country could fall significantly behind other EU Member States in the rollout of 5G. Citymesh secured spectrum in all bands on offer by partnering with Digi Communications, subsequently announcing its intention to build a nationwide 4G/5G network over the coming years, deploying 3,500-4,000 antennas.
Challenger aiming to disrupt
Digi is aiming to disrupt the market’s status quo, tailoring propositions to the consumer and business markets, and offering a “hybrid mobile strategy” that enables roaming between public and private networks. Several European operators are either pushing for in-market consolidation or have agreed to merge (e.g. Orange/MasMovil in Spain and Three/Vodafone in the UK), arguing that greater scale is needed for them to invest sufficiently in their networks. However, after over 20 years of three mobile providers, Digi’s arrival in Belgium will turn the country of less than 12m into a four-player market. A similar story is playing out in Portugal, where Digi Communications has acquired spectrum set aside for new entrants and is looking to launch commercially in H1 2024.
