- Millicom acquires 100% of Movistar Ecuador, expanding presence in the Andean region.
- Telefónica has now exited four Latin American markets since 2019, with others under review.
What happened: Millicom strengthens presence in Ecuador
Telefónica has finalised the sale of its Ecuador-based subsidiary, Otecel—operating under the Movistar brand—to Millicom for $380M. This marks a key phase in the Spanish firm’s ongoing reduction of its Latin American footprint. The agreement grants Millicom full control over Movistar Ecuador. Known for its operations under the Tigo brand in the region, Millicom is expected to gain a stronger position in Ecuador’s mobile market, which is currently led by América Móvil’s Claro and the government-run CNT.
Estimates before the transaction indicated that Claro held 52% of the market, Telefónica 31%, and CNT 17%. The acquisition may shift this balance, especially in urban hubs such as Quito and Guayaquil. Millicom had previously agreed to acquire a 67.5% share in Movistar Colombia for approximately $395M. Its CEO, Marcelo Benítez, described the Ecuador transaction as a “pivotal” event that supports the company’s expansion goals in the region.
Also read: Telefónica sells Uruguay unit to Millicom for $440M
Also read: Telefónica posts $1.4B loss on Latin America writedowns
Why it’s important
The divestment in Ecuador aligns with Telefónica’s broader plan to reduce its presence in high-risk markets and reinforce its primary operations in Europe. Since 2019, the company has withdrawn from Argentina, Uruguay and Ecuador. In early 2025, Telefónica disposed of its Peruvian branch for slightly over $1M, following that unit’s insolvency proceedings. This led to an accounting loss of approximately US$1.9B in the first quarter, driven by asset impairments in both Peru and Argentina.
Telefónica is also in the process of reducing its stake in its Colombian operations. The US$395M deal with Millicom may be followed by the sale of the remaining 32.5%, currently owned by the Colombian state and other investors. In contrast to Telefónica’s exit strategy, Millicom is consolidating its role across several Latin American markets. The Ecuador acquisition, alongside its growing presence in Colombia, may enhance its long-term competitiveness in the region.
