In less than a year, Millicom acquired four Telefónica subsidiaries. It paid $2.92 billion for the businesses in Ecuador, Chile, Colombia, and Uruguay. With these purchases, it will see a 41% jump in the number of broadband subscribers, reaching a total of 7.3 million in Q4 2025. Millicom already had a solid presence in Colombia, and with the annexation of Telefónica, it will consolidate its position as the second-largest broadband player in the country and the largest in fiber. The approval process took almost a year, which allowed competitors to gear up. For example, since the purchase announcement in March 2025, Claro (América Móvil), the market leader, has accelerated its commitment to fiber in the country. Colombia benefited from this, as although it was relatively behind in the deployment of FTTH, by 2025, fiber had become the dominant option. The entry into Chile will mark a shift from the traditional business profile focused on low-income markets with little technical sophistication. Chile has a highly competitive dynamic, which, among other aspects, is reflected in the world's second-highest broadband speed offering. These offerings are supported by the bundling of proprietary TV services and a wide range of OTTs. Another challenge for Millicom in Chile is that Telefónica did not sell On*Net, the wholesale FTTH network that supports the access business of Movistar (Millicom), Claro (América Móvil), and Entel (Almendral). Innovation and high operating expenses are two challenges for a group that has made a cult of reducing CAPEX and increasing margins.
