Telefonica to Sell Its Ecuador Unit

In a little over one month, Telefonica sold another one of its Latin America units. Millicom agreed to buy their business in Ecuador for $380 million.

The agreement is subject to regulatory approval and is part of an ongoing Telefonica strategy to cut its exposure to Latin America in favor of focusing on what it deems to be its key markets. Telefonica noted its Movistar brand is the second largest in Ecuador, with around 5 million connections as of the end of March.

In its statement, Millicom positioned the purchase as significantly enhancing its regional footprint and commercial reach. The operator group’s CEO, Marcelo Benitez, added that the acquisition reflects their long-term confidence in Latin America and commitment to purposeful, sustainable growth.

“Ecuador offers a dynamic and growing digital market within a stable, dollarised 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,” added Benitez.

Last month, Millicom struck a deal to buy Telefonica’s Uruguay division for $440 million, having finalized a long-expected agreement for Telefonica’s majority stake in Colombian provider Coltel two months earlier. Aside from the sales to Millicom, Telefonica also signed deals to exit Peru and Argentina in 2025.