Digi Belgium Faces Debt Crisis as Legal Battles Mount

Telecom operator Digi Belgium is facing a deepening financial crisis, with over 4.3 million euros in outstanding debt claims from 12 creditors, unpaid invoices, and a new lawsuit from Telenet’s fiber subsidiary, according to an exclusive investigation by Het Laatste Nieuws. The revelations raise serious questions about the viability of the fourth player in Belgium’s telecom market.

A Disruptor Under Pressure

Digi, the Romanian telecom company, entered the Belgian market in December 2023 with ultra-low tariffs, offering mobile subscriptions for around 5 euros per month - the cheapest on the market. The company’s aggressive pricing strategy was celebrated by consumers as a long-overdue price break in a country historically known for some of Europe’s highest telecom costs.

However, the investigation reveals that the company’s cost-cutting model has come at a significant price. According to a list obtained by HLN’s investigative unit, Digi faces more than 4.3 million euros in outstanding court claims from 12 creditors, including 300,000 euros in unpaid social security contributions to the Belgian National Social Security Office (RSZ) and unpaid supplier invoices totaling up to half a million euros.

Largest Claim Comes From Proximus

At the top of the creditor list sits competitor Proximus with a 1.3 million euro claim against Digi. The claim stems from a court-imposed penalty of 3,000 euros per violation - capped at 1.5 million euros - for installing network infrastructure without proper permits. The Brussels Court of Appeal confirmed in May 2026 that Digi installed part of its fixed internet network without the required urban planning permits.

New Lawsuit From Telenet’s Wyre

Digi now faces a new legal battle against Wyre, Telenet’s fiber network subsidiary, over the alleged illegal installation of facade cables. Telenet confirms the lawsuit but declines further comment. Digi has responded with a counterclaim, accusing Telenet of hypocrisy.

“Telenet is suing us for a practice they themselves have been applying for years,” Digi said in a statement. “That’s why we have now in turn summoned them for their above-ground cable spans in Brussels, which we believe fall outside the law.”

Systematic Late Payments

Beyond the court claims, the investigation reveals a pattern of systematic late payments. Data from GraydonCreditsafe shows that Insky, Digi’s Belgian payment company, paid 95 percent of its invoices more than 90 days late as of three months ago. While this has improved, Digi still only pays about 25 percent of invoices on time.

Some creditors have become so discouraged that they have given up their claims entirely. “We dropped our lawsuit,” said a company that did data analysis for Digi. “There’s still 70,000 euros outstanding, but when we heard we had to get in line at the back, we threw in the towel. What’s the point? They get away with everything.”

A former Digi employee confirmed the pattern: “Some small suppliers and freelancers felt they couldn’t win a fight over a few thousand euros. As a result, many people ultimately worked for the company for free, against their will.”

Financial Losses and Management Turmoil

The company’s financial position remains precarious. According to its 2024 annual results, Digi recorded a loss of 11.8 million euros before taxes, with revenue of 5.8 million euros against 17.6 million euros in costs. The company had just under 100,000 subscribers in May 2026, most paying around 5 euros per month.

Management instability has compounded the problems. CEO Jeroen Degadt left the company on June 30, 2026, having served since 2023. Earlier, in February 2025, five of eleven directors were fired overnight via email, followed by more than 50 staff departures in three weeks, as reported by ITdaily.

The Romanian Connection

Digi Belgium operates as a joint venture between Romanian parent company Digi Communications and Belgian company Citymesh, which holds 49 percent. According to multiple sources, tensions have been rising between the partners over capital injections, with the Romanian parent company controlling financial decisions.

“No matter how often the Belgian team insists on payment, Romania simply doesn’t mark certain invoices as urgent,” said the manager of a consultancy firm involved with Digi.

A former employee added: “The company strives for extremely cost-efficient operations and wants to avoid expensive loans at all costs. The strategy is to only pay invoices when new revenue comes in. But these are of course reprehensible practices that show a lack of respect for suppliers.”

Is Bankruptcy Looming?

The central question raised by the investigation is whether Digi Belgium is heading toward bankruptcy. Former employees say bankruptcy was never a concern, noting that the Romanian parent company has more than enough resources to pay all bills. Digi also denies current debts to RSZ or tax authorities and claims suppliers are paid properly, though HLN’s data contradicts this.

However, the company’s financial trajectory raises concerns. Digi has invested 200 million euros in Belgium but faces mounting legal challenges, an uncertain path to profitability, and a critical 2030 deadline when it must transition from using Proximus’s network to its own infrastructure.

What This Means for Customers

For Digi’s roughly 100,000 customers, the financial troubles could have direct implications. “If politicians eventually have enough of these practices, it could directly affect them,” said a former employee. “What if the company loses its license? Also, the unpaid invoices and lawsuits don’t help the network rollout. By 2030, Digi must stand on its own and can no longer use Proximus’s infrastructure. The question is whether they’ll meet that deadline.”

The Broader Picture

This story highlights the challenges of disruptive pricing strategies in mature telecom markets. Digi’s entry into Belgium forced competitors to lower prices, but the investigation reveals the hidden costs of such aggressive pricing - unpaid suppliers, safety shortcuts, and legal battles. The company’s turbulent start was already documented in March 2025, when early reports of payment problems and layoffs emerged.

As Digi faces its mounting challenges, the question of whether its ultra-low-cost model can be sustained in the Belgian market remains open. For now, the company continues to operate, but the mounting debts, legal battles, and management instability paint a picture of a business under severe strain. The coming months will be critical in determining whether Digi can stabilize its finances and meet its ambitious network rollout targets before the 2030 deadline.