Romanian telecom company, Digi Communications (Digi), has reached an agreement to acquire NOWO Communications (NOWO), Portugal’s fourth-largest telecom operator, from Spain’s MásMóvil for EUR 150 million (USD 162 million) as it prepares to enter the Portuguese market.
NOWO boasts 270,000 mobile and 130,000 fixed telephony subscribers and holds licenses in the 1800 MHz, 2600 MHz, and 3600 MHz frequency bands.
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Digi’s acquisition of NOWO follows closely on the heels of Vodafone’s failed attempt to purchase NOWO less than a month ago, a move that was blocked by the Autoridade da Concorrência (Portuguese Competition Authority or AdC) due to concerns about competition.
“NOWO exerts considerable competitive pressure on the other market operators. The merger would lead to significant price increases,” the AdC said, indicating that NOWO might increase its mobile product prices by up to 55%, whereas Vodafone’s potential price hikes would be in the single digits.
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In 2021, Digi secured licenses to launch 5G operations in Portugal and has since been developing its own network for both 5G services and fixed fiber optic telecommunications.
A merger with NOWO is expected to enable Digi to compete more effectively against the current market leaders—NOS, Altice (MEO), and Vodafone Portugal—making it an appealing option for the AdC.
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