Millicom (Tigo) Strengthens South American Leadership with USD 380 Million Acquisition of Telefónica Ecuador
- Strategic expansion into Ecuador's stable, dollarized economy with 18.5 million population
- Acquisition of the second-ranked mobile operator in Ecuador for USD 380 million
- Entry into a growing market with +1.4% mobile and +3.6% fixed broadband growth
- Ecuador's improving fiscal position with deficit reduction from 3.5% to 1.4% of GDP
- Enhanced geographic diversification strengthening overall cash flow resilience
- Transaction subject to regulatory approvals and closing conditions which may delay completion
- Integration challenges in entering a new market with existing competition
- Significant capital investment of USD 380 million required for acquisition
Insights
Millicom's $380M acquisition of Telefónica Ecuador expands its Latin American footprint, leveraging a stable dollarized economy for strategic growth.
Millicom's
The deal offers several strategic advantages for Millicom. First, it provides immediate access to approximately 18.5 million potential customers in a country where
Ecuador's macroeconomic improvements further enhance this acquisition's appeal. The country has reduced its fiscal deficit from
The telecom market itself shows healthy growth dynamics with mobile services expanding at
For Millicom shareholders, this acquisition represents geographic diversification that should enhance cash flow stability across its broader Latin American portfolio, potentially reducing the company's overall risk profile while providing new growth avenues in a market showing consistent expansion in digital services.
Millicom (Tigo) Strengthens South American Leadership with USD 380 Million Acquisition of Telefónica Ecuador
Key Highlights:
- The acquisition reinforces Millicom’s strategic position and operating scale in Latin America, strengthening its platform for long-term regional growth.
- The acquisition also enhances Millicom’s geographic diversification, with the addition of Ecuador — a stable, dollarized economy with a supportive macroeconomic outlook — strengthening overall cash flow resilience.
- Ecuador’s telecom sector shows consistent growth and regulatory momentum, offering a solid runway for long-term expansion and innovation.
Luxembourg, June 13, 2025 – Millicom International Cellular S.A. (“Millicom”) has signed a definitive agreement to acquire Telefónica’s telecommunications operations in Ecuador in a transaction valued at USD 380 million. This acquisition aligns with Telefónica’s broader strategy to reshape its portfolio in Latin America and presents Millicom with a strategic opportunity to strengthen its presence in South America, expanding into a stable, dollarized economy with favorable macroeconomic fundamentals.
The deal significantly enhances Millicom’s regional footprint and commercial reach, laying the foundation for innovation, digital inclusion, and sustained long-term growth. Ecuador’s telecommunications sector — supported by consistent expansion in mobile and broadband services and an engaged regulatory environment — offers a compelling platform for Millicom to drive digital transformation.
Marcelo Benitez, CEO of Millicom, commented: "This acquisition reflects our long-term confidence in Latin America and our commitment to purposeful, sustainable growth. Ecuador offers a dynamic and growing digital market within a stable, dollarized economy, making it a natural fit for Millicom’s strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification, and long-term value creation.”
The transaction is subject to regulatory approvals and other closing conditions.
Ecuador Profile:
- Ecuador has a population of approximately 18.5 million (2025 est.), with a median age of 32.4 and
66% living in urban areas. - Dollarized, open economy with resilience across energy, agriculture, and services. The fiscal deficit dropped from
3.5% to1.4% of GDP in one year, while reserves increased by USD 2.4 billion. Backed by a USD 4 billion IMF facility, Ecuador is strengthening its macroeconomic stability without cutting social spending. - IMF and World Bank-supported reforms are enhancing transparency, governance, and private-sector conditions, especially in infrastructure, energy, and telecom.
- Telefonica Ecuador ranks second in mobile in a fragmented telecom landscape.
- Mobile and broadband markets show consistent growth: +
1.4% mobile, +3.6% fixed broadband. - Telecom´s sector demonstrated resilience through recent economic volatility.
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For further information, please contact:
| Press: | Investors: |
| Sofia Corral, Director Corporate Communications press@millicom.com | Michel Morin, VP 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, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 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
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