The best mobile companies in Portugal are not from Portugal

A surge of no-contract mobile operators has shaken up Portugal’s telecom market by offering prepaid and postpaid plans with zero minimum periods and prices starting as low as €4 per month. These new entrants, ranging from independent MVNOs like Digi and Lycamobile to low-cost brands launched by major incumbents (Uzo by MEO, WOO by NOS, Amigo by Vodafone), aim to capitalize on consumer frustration with hefty exit penalties and rigid twelve- or twenty-four-month commitments of legacy carriers. While advertised as “no commitment,” terms and conditions — including auto-renewal clauses and top-up validity periods — require scrutiny to avoid unexpected charges. The shift reflects broader European trends toward flexibility in mobile services and promises relief for users tired of past contractual abuses.

This article was written independently with no involvement of any telecomunication company.

Market disruptors

Over the past year, several new providers have launched in Portugal, offering truly no-contract options and transparent pricing. Digi Portugal offers unlimited data plans for under €10 a month, a price point that has forced incumbents to rethink their offerings. MVNO Lycamobile has also expanded its eSIM and prepaid lineup, combining competitive rates with 5G access on Vodafone’s network. Meanwhile, Phone-ix and Moche provide no-frills prepaid SIMs on MEO’s network, appealing to digital nomads and younger users.

The legacy of lock-in and fines

For years, consumers faced lengthy lock-in periods, with traditional carriers like MEO, Vodafone and NOS imposing twelve- to twenty-four-month contracts that could incur hefty penalties for early termination. In 2022, Anacom fined MEO €2.5 million for obstructing contract terminations and unfairly penalizing customers who sought to exit their agreements. Frustrated users took to forums to share stories of having to cancel via registered mail, battle opaque customer-service hurdles, or face surprise charges long after they thought their contract had ended. These abuses paved the way for competitor MVNOs to market themselves on flexibility and clarity.

Who is behind the newcomers

Unlike the legacy trinity of MEO (Altice), NOS and Vodafone, most of the new entrants are MVNOs or brand extensions with direct-to-consumer models. Digi Portugal is part of Hungary’s Digi Group, which also operates across Eastern Europe and Spain under similar “no commitment” philosophies. Lycamobile, a UK-based MVNO, remains the largest independent player in Portugal and emphasizes international calling without long-term obligations. Meanwhile, traditional operators launched sub-brands—Uzo by MEO, WOO by NOS and Amigo by Vodafone—to capture budget-conscious segments without diluting their core premium offerings. Regulatory oversight by Anacom requires each MVNO to be authorised and accountable directly to customers, ensuring that at least the legal framework supports transparency.

The fine print and cancellation ease

Despite “no commitment” marketing, subscribers should read the terms for auto-renewal, top-up validity and fair-usage limits. Many prepaid bundles require credit renewal every 30 days or risk service suspension, effectively creating a de facto monthly contract. On the upside, companies like Digi and Lycamobile promise immediate deactivation upon request, with no penalty fees beyond any remaining credit expiry. For those needing assistance, specialised intermediaries have emerged that can handle cancellations and portability requests on behalf of consumers to avoid bureaucratic delays.

What subscribers should know

Shop around and compare the real cost per gigabyte and voice minute rather than headline prices. Verify network coverage maps, as MVNOs resell capacity and may throttle data once peak thresholds are exceeded. Always confirm whether your chosen plan includes EU roaming without extra charges or requires activation in Portugal first. Finally, keep records of all communications in case of disputes, and remember that Anacom provides a complaints portal to mediate unresolved issues