New players enter the low-cost fiber and mobile segment. After the arrival a few weeks ago of Lowi offering a combination for 20 euros, the same price as Digi, the virtual operator Finetwork enters the game and improves prices.
The Alicante operator joins the party. Finetwork is not going to let Digi and, recently, Lowi, keep the ultra-low price segment. The purple operator has announced a new fiber + mobile line pack for only 18.90 euros per month, thus ahead of the rates of the other two companies, whose initial offers for the same convergent service are around 20 euros.
Although Lowi, from the Vodafone group, surpassed Digi’s conditions by offering 600 Mb in its Fibra Fit compared to Digi’s 500 (both with 15 GB for the mobile), Finetwork equals Lowi by also offering speed of 600 Mb, Yes, with 10 gigabytes of mobile data instead of 15.
Like the homologous rates in these two companies, Finetwork’s maintains its price forever, and also offers 5G mobile connectivity.
But above all, it stands out that Finetwork will be able to offer this service to a much larger spectrum of regions than in the case of Lowi or Digi, given that these two operators are constrained to only be able to use their own network (Vodafone’s in case of Lowi), and Digi’s own fiber network. The purple operator, on the other hand, will be able to combine the fixed coverage network that it obtains from Vodafone (with a 10-year contract) with that which it can obtain from other wholesale operators, such as MasOrange.
Although the low price that Finetwork establishes can make it difficult for it to obtain large profits, the greater extension of territory over which it can operate can give the operator a margin to be competitive. The range of homes that Finetwork could have access to would be around 20 and 22 million, compared to the approximately 10.6 million homes that Vodafone has access to, according to Expansión.
Now the question arises as to whether other large operators will also enter the fray. Although MasOrange does have some low-cost brands, Telefónica is too far from this market niche, while its cheapest fiber and mobile rates, sold from O2, do not go below 30 euros. On the other hand, this pressure will force the rest of the companies to make their services more attractive to their clients, preventing them from deciding to switch to one of these low-cost companies at the end of their stay or current offers.
More cheap options for users
The entry of Lowi and Finetwork into the lower price environment will give users more options to choose from. Beyond the price, which is increasingly similar between these operators, clients will have to go into more detail to choose one or the other. For example, although the three mentioned operators offer cumulative gigs, only Lowi requires 12 months of permanence. Digi requires 3 months, while Finetwork does not ask for any.
After these changes, Finetwork’s current fiber+mobile rates are as follows:
- Fiber 600 Mb and mobile 10 GB for 18.90 euros
- Fiber 600 Mb and mobile 55 GB for 25.90 euros
- Fiber 600 Mb and mobile 150 GB for 29.90 euros
