Digi & Telefónica Sign Long-Term Deal En Route to Full MNO Status in Spain

Digi Communications has formalised a comprehensive network-sharing agreement with Telefónica that marks a significant milestone in its journey to becoming a full mobile network operator (MNO) in Spain. Effective from 1 January of the next year, the deal includes both RAN-sharing and national roaming, replacing Digi's current agreement under the mobile virtual network operator (MVNO) model.

The agreement spans a minimum duration of 16 years and includes sharing of active mobile infrastructure. Critical to the deal is Telefónica and Digi's collaboration on spectrum use in the 3.5 GHz band, as well as RAN resources. Where Digi doesn't yet have coverage, it can roam onto Telefónica's mobile network.

Alongside mobile network sharing, Digi has also secured a fixed broadband bitstream wholesale agreement with Telefónica. That fixed part is set for 10 years, with an option for extension, bolstering Digi's ability to deliver its own fixed broadband services without building every component of its infrastructure.

This deal builds on Digi's spectrum approvals last December, where it acquired several blocks from MasMovil: 2×10 MHz in 1800 MHz, 2×10 MHz in 2.1 GHz, and 20 MHz at 3.5 GHz. That spectrum acquisition was crucial for Digi's regulatory positioning, particularly in order to comply with competition requirements tied to the Orange-MasMovil merger.

Spain's telecom regulatory body, the CNMC, still classifies Digi as an MVNO in mobile statistics and "other" in fixed broadband. But with these agreements, Digi is stepping into the role of a credible fourth national operator, challenging the incumbent four big telcos (Telefónica, Vodafone, and the new MasOrange entity), and seeking to expand its competitive footprint.

For Telefónica, the deal is advantageous as well. It provides long‐term wholesale income, better infrastructure utilisation, and partnership benefits. While the financial terms were not disclosed, Telefónica described the deal as beneficial for sustainability and balance sheet revenue continuity.