Spanish telecommunications giant Telefónica keeps on selling off its operations in Latin America. On June 13 it reached an agreement to sell 100% of its Ecuadorian unit to Millicom, a provider of telecommunications services operating under the Tigo brand in Latin America.

The sale of the company’s assets in Ecuador follows previous similar transactions in Uruguay and Colombia (in both cases the purchaser was Millicom), Argentina (acquired by Telecom Argentina) and Peru (acquired by Integra Capital), as well as those closed several years ago in Central America. According to information provided by the Spanish company, “the transaction is part of the strategy adopted by Telefónica with a view to optimizing its portfolio and progressively reducing its exposure in Latin America by focusing on key markets and the creation of sustainable value.” It is worth mentioning that Telefónica still owns subsidiaries in some Latin American countries: Brazil (under the Vivo brand), Venezuela, Chile and Mexico.

As a result of its latest acquisitions, the number of countries where Millicom operates under its Tigo brand will reach eleven: Bolivia, Paraguay, Colombia, Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, Uruguay and Ecuador.

The amount of the sale of Movistar Ecuador is USD 380 million and it has been reported that “the transaction is subject to approval by regulatory agencies.”

According to a press release, “Telefónica Ecuador is currently the second most important mobile operator in the country, with a market share approaching 28% and a customer base of approximately 5 million as of the end of March 2025.” In the Ecuadorian market, Movistar offers mobile services and OTT Pay TV service Movistar TV.