Telefónica transfers its subsidiary in Ecuador to Millicom for 329 million euros

The Spanish telecommunications multinational This Thursday, Telefónica completed its stage as a mobile telephone operator in Ecuadorafter a period of two decades where its legacy in innovation and inclusion stands out, and wished “the greatest success” to the company Millicom, which operates under the Tigo brand, which will now take its place in the Ecuadorian market.

The acquisition of Telefónica Ecuador by Millicom is part of the Spanish group’s exit from the Latin American market and It closed for 380 million dollars (about 329 million euros)while it recently also acquired the Telefónica subsidiary in Uruguay for 440 million dollars (about 380 million euros).

The operation crystallized without the Spanish company having yet been able to finalize the new concession that is still in negotiations with the Ecuadorian Government, after the 15-year concession granted in 2008 expired in 2023 and had worked through extensions pending an agreement.

Telefónica had been present in Ecuador since 2005, since it acquired the company Otecel, which until then operated under the Bellsouth brand.

Through a statement, the Spanish firm noted that it leaves in Ecuador “a modern company, recognized for its impact on the digital ecosystem and with a social legacy that transcended borders.”

The company recounted its history in the Andean country, ensuring that since its arrival led “the deployment of new generation networks” as the first private operator to offer 4G LTE, starting coverage in the capital Quito, which later expanded to other cities in the country “in record time.”

He also mentioned that he participated in strategic projects of submarine cabling such as the Pacific-Caribbean Cable System (PCCS) or the Mistral, “expanding the capacity and resilience of internet traffic in the country and the region.”

Likewise, he noted that “it accelerated the digitalization of the market with pioneering decisions that set standards for the industry.”

“It was the first to implement electronic billing directly to the final consumer, promoted flexible work with one of the first home office models in the country and consolidated a reference work culture, widely perceived as one of the best places to work,” said Telefónica Ecuador.

These advances, the company added, “were complemented by a sustained commitment to infrastructure and quality of service that strengthened connectivity in the main cities and regions.”

“Looking ahead, the company is embarking on an ambitious RAN network modernization program, which lays solid foundations to bring 4G LTE coverage to the entire territory and enable higher performance connectivity,” added Telefónica.

And highlighted the launch of the Tuenti brand as a “customer value proposition” that was created to respond to the digital habits of new generations and that “managed to consolidate itself as a success story”, exceeding two million customers.

Alfonso Gómez, executive director of Telefónica Hispam, pointed out that Ecuador showed them “the power of technology when it is put at the service of people” and that the company leaves “grateful and proud” of “having contributed to the digital development of the country for more than two decades, accompanying its cities and communities in decisive moments, and leaving a solid, modern operation prepared for the future.