Millicom Completes $380 Million Acquisition of Telefonica’s Ecuador Operations

Millicom Strengthens Its Latin American Presence with Major Acquisition

In a strategic move to bolster its footprint in Latin America, Millicom has successfully completed the acquisition of Telefonica’s operations in Ecuador for a significant sum of US$380 million. This acquisition represents a critical milestone in Millicom’s efforts to position itself as a leader in the region’s telecommunications market. The deal is part of Millicom’s targeted strategy to concentrate on South American markets while gradually withdrawing operations from other international regions, such as Africa. The company emphasized that this transaction aligns with its long-term commitment to South America, a region with promising growth potential for digital and connectivity solutions.

The Appeal of Ecuador’s Stable, Dollarized Economy

One of the standout factors that likely influenced Millicom’s decision to invest in Ecuador is the country’s stable, dollarized economy. Ecuador adopted the US dollar as its official currency in 2000, after a period of financial instability. This stability has made Ecuador an attractive market for international investors, providing a solid foundation for sustainable growth. Millicom’s CEO Marcelo Benítez highlighted the group’s confidence in the region’s telecommunications sector and described the acquisition as a move to “consolidate Millicom’s leadership” in Latin America. By tapping into this high-potential market, Millicom aims to expand its regional influence and capabilities, providing improved connectivity solutions to its growing customer base.

New Milestones: Millicom’s Expanding Customer Base

With the completion of this acquisition, Millicom now operates in 11 countries, serving a robust base of 46 million mobile customers. The company also connects an impressive 13 million households via its extensive fiber network infrastructure, reinforcing its position as a telecommunications pioneer in the region. These numbers are a testament to Millicom’s continued investment in cutting-edge network solutions and customer-focused services, allowing it to stay ahead of competitors and respond to the increasing demand for high-speed connectivity across South America.

Telefonica’s Global Restructuring Strategy

While Millicom is expanding, Telefonica is taking a different path by streamlining its global operations to focus on its core markets — Spain, Brazil, Germany, and the UK. Under the leadership of CEO Marc Murtra, the company has been shifting its attention to these regions, which collectively generate the majority of Telefonica’s revenue. This strategy aligns with their goal to optimize profitability and concentrate resources on high-return markets. The Ecuador divestment underscores Telefonica’s commitment to this focused approach while allowing other players, such as Millicom, to capitalize on opportunities in secondary markets like Ecuador.

As Millicom deepens its presence in Latin America and introduces enhanced telecommunications solutions, this acquisition marks another pivotal step in reshaping the connectivity landscape in the region. With the backing of a stable economy and an increasing demand for advanced digital infrastructure, Millicom is well-positioned to thrive in Ecuador and beyond.