Spanish telecommunications giant Telefonica has agreed to sell its Uruguayan subsidiary, Movistar Uruguay, to the Millicom Group, as part of its strategy to reduce its presence in Latin America. This transaction is valued at $440 million and awaits regulatory approvals before completion.
Telefonica has been strategically withdrawing from Latin America, and this latest move follows its recent exits from Colombia and Peru. The company aims to focus resources on its primary markets in Europe, notably Spain, Germany, and the UK. Telefonica’s chairman, Marc Murtra, points out that capital redirection allows them to engage in consolidation within Europe’s telecommunications sector.
Movistar Uruguay, owned by Telefonica, is Uruguay’s second-largest mobile operator, holding approximately 29% of the market share, according to March 2025 data. Movistar offers 2G, 3G, 4G, and 5G services in the 700 MHz, 850 MHz, and 1,900 MHz frequency bands.
Meanwhile, Millicom, which operates under the Tigo brand in Bolivia and Paraguay, is expanding its footprint in Latin America. This acquisition diversifies its cash flow sources amid Uruguay’s stable economic environment. Marcelo Benitez, CEO of Millicom, affirmed the company’s commitment to investing in Uruguay’s digital landscape, focusing on mobile infrastructure and service quality enhancements.
The broader implications of Telefonica’s sales in Latin America seem to indicate a consolidation effort. In February, Telefonica sold its Argentine operations to Telecom Argentina for $1.245 billion. This transaction faced regulatory scrutiny regarding potential monopoly risks, with Argentine authorities temporarily blocking the acquisition.
Additionally, in March, Telefonica sold 67.5% of its Colombian unit to Millicom for around €368 million. Millicom also expressed interest in acquiring the remaining 32.5% stake.