- Telefónica sells its Ecuadorian unit to Millicom for $380 million to concentrate on core markets in Europe and Brazil.
- The deal boosts Millicom’s reach in Ecuador but underscores Telefónica’s strategic withdrawal from the Latin American region.
What happened: Telefónica to sell Ecuadorian unit to Millicom for $380M
Telefónica has agreed to sell its Ecuadorian unit, Otecel S.A. (operating under the Movistar brand), to Millicom International for $380 million. The deal forms part of Telefónica’s broader strategy to reduce its presence in Latin America and focus on core markets like Spain, Brazil, the UK, and Germany. With approximately 5 million customers and a 28% share of Ecuador’s mobile market, Telefónica ranks second behind América Móvil’s Claro. Regulatory approval is anticipated to be straightforward, as Millicom does not currently operate in Ecuador.
Also read: Telefónica gears up for bold bid on Vodafone Spain
Also read: Telefónica sells Uruguay unit to Millicom for $440M
Why it’s important
This sale completes Telefónica’s continued retreat from Latin America following divestments in Uruguay, Peru, and Argentina. It highlights the company’s shift toward fewer, more profitable markets and marks a decisive change under new CEO Marc Murtra. For Millicom, the acquisition strengthens its Tigo brand’s presence in a stable, dollarised economy, bolstering its regional scale and growth ambitions. However, Telefónica faces continued scrutiny over remaining exposure in more volatile Latin American markets, and the financial fallout from prior sales has resulted in significant write‑downs
