Telefónica Sells Ecuador Subsidiary to Millicom for $380 Million

Telefónica has reached an agreement to sell 100% of its Telefónica Ecuador stake to the Luxembourg-based Millicom group for $380 million, according to a recent statement to the National Securities Market Commission (CNMV). The sale of Telefónica Ecuador, which operates under the Movistar brand, marks another step in Telefónica’s strategy to reduce its exposure to Latin America [1].

Millicom acquires Telefónica Ecuador: A Strategic Move

The transaction, subject to customary adjustments and regulatory approvals, aligns with telefónica’s broader policy of streamlining its operations in Latin america.this sale represents the fifth divestiture by the company, led by Marc Murtra, in the American Subcontinent, following the completed sales of subsidiaries in peru and Argentina, and pending approvals for Colombia and Uruguay. After this transaction, Telefónica’s presence in Latin America will be limited to Mexico, Chile, Venezuela, and Brazil, with Brazil considered a strategic market alongside Spain, the United Kingdom, and Germany.

Did You Know? Telefónica Ecuador holds approximately 28% of the mobile market share in Ecuador, serving around five million customers as of March 2025.

Millicom, while based in Luxembourg, has a significant presence in the Latin American telecommunications sector through its Tigo brand. The company previously acquired Telefónica’s subsidiaries in Uruguay for $440 million and Colombia Telecomunicaciones (Coltel) for $400 million. In 2019, Millicom also acquired subsidiaries in Costa Rica, Panama, and Nicaragua for $1.65 billion [2].

Ecuador’s Mobile Market Landscape

Telefónica Ecuador currently stands as the second-largest mobile operator in the country, holding a market share of approximately 28% and serving around five million customers as of March 2025. América Móvil, controlled by Carlos Slim, leads the market with 54%, followed by the local operator CNT with 18%.

Pro Tip: Keep an eye on regulatory approvals, as they can significantly impact the timeline and final terms of the acquisition.

Regulatory Approval and Millicom’s Expansion Strategy

The sale of Telefónica Ecuador is contingent upon approval from the Ecuadorian regulatory authorities,which have the power to impose conditions or even block the transaction if it is deemed to violate free competition laws. Though, given that Millicom does not currently operate in Ecuador, regulatory hurdles are expected to be minimal.

Millicom’s CEO,Marcelo Benítez,emphasized that the acquisition reflects the company’s long-term confidence in Latin America. He stated that Ecuador’s dynamic and growing digital market, coupled with a stable and dollarized economy, makes it an ideal fit for Millicom’s strategy. The company aims to strengthen its innovation, diversification, and long-term value creation by expanding its presence in South America.

Telefónica’s Strategic Shift in Latin America

This sale is part of a series of strategic moves by Telefónica to optimize its portfolio and focus on key markets.In February 2025, Telefónica sold its Argentinian subsidiary to a group of investors controlled by the Clarín media group and the Fintech fund for approximately 1.19 billion euros. Additionally, in april 2025, the company announced the sale of its Peruvian subsidiary to the Argentine firm Integra Tecc International for 900,000 euros, including the assumption of 1.2 billion euros in debt.

millicom, on the other hand, has indicated in a statement that this operation “significantly reinforces the regional presence and commercial scope of Millicom, laying the foundations for innovation, digital inclusion and long -term sustained growth.” “The telecommunications sector of Ecuador, backed by a constant expansion of mobile and broadband services and a compromised regulatory habitat, offers an attractive platform for Millicom to impulse the digital transformation,” the company added.

What are your thoughts on this acquisition? How do you see the telecommunications landscape evolving in Latin America? Share your comments below!