Telefónica has reportedly resumed discussions about acquiring Vodafone Spain from Zegona, but the scale of a direct deal could make Digi an important part of any solution required by competition regulators. Neither Telefónica nor Digi has confirmed that it is preparing an offer.
According to analysis by German bank Berenberg, combining Telefónica and Vodafone Spain directly would create an operator with roughly 46% to 47% of the consumer mobile and fixed-broadband market. Such a position would likely require substantial concessions to secure approval from Spanish competition authorities and the European Commission.
Digi already accounts for an estimated 12% to 15% of the customer base across the mobile and broadband services assessed by Berenberg. The bank’s analysis suggests remedies attached to a Telefónica-Vodafone transaction could strengthen Digi’s competitive position, rather than simply reduce the combined company’s scale.
One potential structure would see Telefónica and Digi jointly acquire Vodafone Spain and divide its assets. Telefónica could take fixed-line customers and part of the mobile subscriber base, while Digi would assume the remaining operations. Another scenario under consideration is a merger between Vodafone Spain and Digi, although that route may not address every issue for Zegona.
The regulatory backdrop is shaped by Spain’s recent wave of consolidation. Orange Spain and MásMóvil combined in 2024 to form MasOrange, a deal approved with measures designed to reinforce Digi, including the transfer of 60 MHz of spectrum and access to national roaming.
Zegona agreed to buy Vodafone Spain for €5 billion in 2023, with the transaction completed in May 2024. Telefónica and Digi are also the only major Spanish operators to have recorded a positive net portability balance so far in 2026, according to the report. Whether any talks progress into a formal bid—and what remedies regulators would demand—remains unresolved.
