Millicom said that the acquisition of Movistar in Ecuador strengthens its position in South America and deepens its geographic diversification
In sum – what to know:
Telefónica exits Ecuador – Telefonica has agreed to sell its Ecuador unit to Millicom for $380 million, continuing its strategy to reduce Latin American exposure.
Millicom expands in South America – The acquisition strengthens Millicom’s footprint across the region, adding a stable, dollarized economy with strong telecom growth and regulatory support to its portfolio.
Path to digital growth – With 5 million customers and a 28% market share, Telefonica Ecuador gives Millicom a solid platform to drive innovation, connectivity and long-term value in the region.
Spanish carrier Telefonica and Millicom International Cellular have reached a definitive agreement under which the latter will acquire 100% of Telefónica’s operations in Ecuador, in a transaction valued at $380 million. In Ecuador, Telefonica operates under the Movistar brand.
For Telefónica, the transaction is aligned with its ongoing strategy to streamline its portfolio and reduce exposure in Latin America, focusing resources on core markets to drive sustainable value. Movistar Ecuador is currently the second-largest mobile operator in the South America nation, serving approximately 5 million customers with a 28% market share as of March 2025.
Meanwhile, Millicom said that the acquisition of Movistar in Ecuador strengthens its position in South America and deepens its geographic diversification. With the addition of Ecuador — a stable, dollarized economy with a positive macroeconomic outlook — Millicom bolsters its regional scale, operating cash flow resilience and long-term growth prospects, the telco said.
Marcelo Benitez, CEO of Millicom, said: “Ecuador offers a dynamic and growing digital market. This acquisition is a strong fit for our strategy of sustainable, innovation-driven expansion in Latin America.”
Last month, Telefonica reached an agreement to sell all of the shares in its Uruguayan subsidiary to the Millicom Group for a total of $440 million.
The transaction is still subject to certain closing conditions, including the approval of the corresponding regulatory authorizations.
Telefónica, which also operates under the Movistar brand in Uruguay, is the country’s second-largest mobile operator, with nearly 29% of the mobile market by March 2025.
In Latin America, Millicom currently operates in Bolivia and Paraguay under the Tigo brand.
In March, Telefónica had also finalized an agreement to sell 67.5% of its Colombian unit Coltel— which it operates under the Movistar brand — to Millicom for approximately approximately $416 million.
In addition to acquiring Telefónica’s stake, Millicom had announced an offer to purchase the remaining 32.5% of Coltel, currently owned by the Colombian government and other investors. If successful, Millicom would gain full control of the company.
In February, Telefonica announced the sale of its Argentine subsidiary to rival Telecom Argentina for $1.245 billion as another step in the company’s efforts to reduce its footprint in Latin America.
The Argentine government initially announced that it will investigate the acquisition to determine whether it creates a monopoly. The Office of the President released a statement warning that “70% of telecommunications services would be controlled by a single economic group, creating a monopoly formed thanks to decades of state benefits.”
In March, the Argentine authorities announced a preventive measure seeking to suspend Telecom’s acquisition of Telefónica. The government said that the suspension is based on the recommendation of the National Commission for the Defense of Competition, which indicated that “the merger of both companies would significantly increase their market share.”
Telefónica’s chairman, Marc Murtra, believes that the company’s exit from Latin America, improves its position to undertake consolidation operations in the telecommunications sector in Europe, where three of its four main markets are concentrated: Spain, Germany and the U.K.
