Telefónica Completes Uruguay Operations Sale to Millicom
Spanish telecommunications giant Telefónica has finalized the closure of its operations in Uruguay following the transfer to Millicom in May, advancing its strategy to reduce presence in Latin America.
Sale of Uruguayan Subsidiary
In May, Telefónica announced the sale of all shares it held in Telefónica Móviles del Uruguay for $440 million, as part of a significant strategic shift to focus on its four primary markets: Spain, Germany, the UK, and Brazil.
Two Decades of Presence in Uruguay
After 20 years in Uruguay, Telefónica’s operation concludes with 1.4 million mobile customers, representing 29% of the market, and providing coverage to over 97% of the country’s 3.4 million population, as stated in Telefónica Hispam’s press release.
Telefónica, which operates in Latin America under the Movistar brand, highlighted that it has invested more than $700 million in infrastructure and spectrum, driving digital growth during its time as an operator in the country.
Millicom’s Entry into Uruguay
Luxembourg-based Millicom, with over 46 million customers globally, welcomed its entry into Uruguay and announced that the integration is expected to positively contribute to free cash flow for shareholders starting in 2026.
Antel’s Dominance and Government Approval
In Uruguay, the state-owned company Antel leads the telecommunications market. Recently, the Uruguayan government authorized the transfer of Telefónica and Millicom’s (Tigo) operations. The latter is a well-known brand in the region.
Broader Latin American Retreat
In recent months, Telefónica has also progressed in selling its Colombian and Ecuadorian subsidiaries, following the conclusion of activities in Argentina and Peru. The sale of these subsidiaries affected Telefónica’s accounts in the first half, resulting in net losses of 1.350 billion euros.
Key Questions and Answers
- Who is Telefónica and why is this news relevant? Telefónica is a Spanish telecommunications company that has completed the sale of its Uruguayan subsidiary to Millicom, as part of its strategy to reduce presence in Latin America.
- What does the sale entail? Telefónica sold all its shares in Telefónica Móviles del Uruguay for $440 million, which has 1.4 million mobile customers and covers over 97% of Uruguay’s population.
- Why is Millicom entering Uruguay? Millicom, with over 46 million customers worldwide, sees potential in Uruguay’s telecommunications market and expects positive contributions to free cash flow for shareholders starting in 2026.
- Who is Antel and what is its role in Uruguay’s telecommunications market? Antel is a state-owned company in Uruguay that leads the telecommunications market. The Uruguayan government recently authorized the transfer of Telefónica and Millicom’s operations to Antel.
- How has Telefónica’s Latin American retreat impacted its finances? The sale of Telefónica’s subsidiaries in Uruguay, Colombia, Ecuador, Argentina, and Peru has resulted in net losses of 1.350 billion euros for the company in the first half of the year.
