Millicom (Tigo) acquires Telefónica Ecuador for USD 380 Million, strengthening its South American footprint

Rhea-AI Summary

Millicom (TIGO) completed the acquisition of Telefónica Ecuador for USD 380 million on October 30, 2025, expanding Millicom’s South American footprint.

The deal brings Millicom’s operations to 11 countries and adds a dollarized, stable market with ~18.1 million people and favorable demographics. Ecuador’s 2025–2026 outlook cites IMF projections of ~1.7% GDP growth (2025) and low inflation (~1.3%), with telecom market growth of +1.4% mobile and +3.6% fixed broadband.

Positive

• Acquisition price USD 380 million
• Operations expand to 11 countries
• Entry into dollarized Ecuador economy (reduces currency volatility exposure)
• Demographics: ~18.1 million population with median age 32–33
• Telecom growth: mobile +1.4% and fixed broadband +3.6%

Negative

• None.

Insights

M&A Strategist

Millicom bought Telefónica Ecuador for USD 380 million, expanding to eleven countries and entering Ecuador’s dollarized market.

By acquiring Telefónica’s Ecuador operations for USD 380 million, Millicom increases geographic scale to eleven countries and adds a national customer base in a dollarized economy of about 18.1 million people. The transaction is a clear, capital-based growth move that increases the company’s operating footprint rather than altering disclosed capital structure details.

Risks and dependencies remain tied to execution of integration and local market performance, as described by the economic indicators reported. The analysis rests strictly on the disclosed facts: IMF growth projections of 1.7% for 2025 and 2.0% for 2026, low inflation near 1.3%, and demographic data showing a median age of 32–33 years.

Watch integration milestones and regulatory close-out, and monitor: any disclosed customer migration metrics, network investment commitments, and results in the next 12–24 months (2026–2027 timeline implied by economic projections).

Telecom Market Analyst

The deal widens Millicom’s South America reach into Ecuador, a market with modest telecom growth and youth demographics.

Ecuador shows modest telecom expansion with mobile at approximately +1.4% and fixed broadband at +3.6%, per the disclosed figures. These growth rates and a largely urban population near 65% frame a steady demand environment for data and connectivity.

Key dependencies include regulatory acceptance, integration of Telefónica’s operations, and capital deployment into networks. Relevant monitorable items are the stated market rankings, the reported demographic base of ~18.1 million people, and follow-up disclosures on network investment and subscriber metrics within the next 12–24 months (2026–2027).

Millicom (Tigo) acquires Telefónica Ecuador for USD 380 Million, strengthening its South American footprint

Luxembourg, October 30, 2025 – Millicom International Cellular S.A. (“Millicom”) today announced the successful completion of its USD 380 million acquisition of Telefónica’s telecommunications operations in Ecuador.

This transaction represents another major step in Millicom’s strategy to deepen its presence in South America, following the company’s recent acquisition of Telefónica Uruguay. With this addition, Millicom expands its footprint into a new, high-potential market—Ecuador, a dollarized economy characterized by stability, solid macroeconomic fundamentals, and a strong demand for advanced digital services.

Marcelo Benitez, CEO of Millicom, commented: “This acquisition underscores our long-term confidence in Latin America and further consolidates Millicom’s leadership as a premier digital connectivity provider in the region. By entering Ecuador, we strengthen our platform to expand digital access, empower communities, and drive economic and social progress. It is another testimony of our strength of execution and our ability to deliver on our strategic vision. We remain deeply committed to connecting people, opportunities, and futures through sustainable and inclusive growth.”

With operations now spanning eleven countries, Millicom reinforces its position as one of Latin America’s leading telecommunications groups. The company continues to advance digital inclusion and innovation, investing in next-generation networks and services that enable individuals, businesses, and governments to thrive in an increasingly digital world.

Ecuador Profile:

• Population & Demographics: Approximately 18.1 million people, with a median age of 32–33 years; about 65% of the population lives in urban areas, creating a young, connected, and increasingly digital consumer base.
• Economic Framework (2025–2026): A dollarized, open economy with solid macroeconomic fundamentals. The IMF projects GDP growth of around 1.7% in 2025 and 2.0% in 2026, with inflation remaining low at around 1.3%, supported by fiscal reforms, energy recovery, and stronger external balances. Key growth drivers include services, energy, and agriculture.
• Resilience & Reform: The country continues its post-pandemic recovery, advancing fiscal consolidation, competitiveness measures, and public-sector reforms to enhance investment confidence and long-term stability (IMF & World Bank, 2025).
• Positive IMF Review: The IMF this week concluded its latest review of Ecuador, reaffirming the country’s stronger-than-expected recovery, low inflation, and continued progress on key reforms — reinforcing confidence in its economic outlook.
• Telecommunications Landscape: A dynamic and competitive market where Telefónica Ecuador ranks second in mobile services. Continued urbanization and digital adoption are driving steady demand for data and connectivity.
• Market Growth & Outlook: Both mobile and broadband segments are expanding, with growth of approximately +1.4% in mobile and +3.6% in fixed broadband. Combined with a stable currency, youthful demographics, and rising digital consumption, Ecuador offers a strong platform for sustained telecom and digital-infrastructure investment.

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For further information, please contact

Press: Sofía Corral, Director Corporate Communications press@millicom.com

Investors: Luca Pfeifer, VP of Investor Relations investors@millicom.com

About Millicom

Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, highspeed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

FAQ

What did Millicom (TIGO) announce on October 30, 2025 about Telefónica Ecuador?

Millicom announced the completion of the USD 380 million acquisition of Telefónica Ecuador on October 30, 2025.

How does the Telefónica Ecuador acquisition affect Millicom's country footprint (TIGO)?

The acquisition expands Millicom’s operations to 11 countries, adding Ecuador to its South American footprint.

What are the key economic metrics for Ecuador cited in the Millicom announcement?

The announcement cites Ecuador population ~18.1 million, IMF GDP growth ~1.7% in 2025, and inflation ~1.3%.

How fast are telecom segments growing in Ecuador according to the announcement?

The release states Ecuador mobile growth ~+1.4% and fixed broadband growth ~+3.6%.

Does the Millicom release explain strategic reasons for buying Telefónica Ecuador (TIGO)?

Yes. Millicom said the deal strengthens its position in South America and adds a high‑potential, dollarized market to expand digital services.