MercoPress. South Atlantic News Agency

Tigo mobile phone brand lands in Uruguay

Tigo might also be interested in football TV rights

The Spanish telecommunications group Telefónica (Movistar) has announced its exit from the Uruguayan market after 20 years, selling its operations to the multinational company Millicom, which operates under the Tigo brand.

The Uruguayan Government of President Yamandú Orsi authorized the transaction following favorable technical evaluations by regulatory bodies (Ursec and Dinatel).

Telefónica thus closed its operations with 1.4 million mobile customers, holding 29% of the market. It said it had invested over US$700 million in infrastructure and spectrum during its time in Uruguay. The divestment aligns with Telefónica's strategy to reduce its presence in Latin America. “Today, the operation closes with 1.4 million mobile customers, representing 29% of the market, providing coverage to more than 97% of the population with the most widely available network in the country and a leader in customer satisfaction,” said the company.

Millicom CEO Marcelo Benitez called the acquisition a “key milestone” in the company's growth strategy in Latin America, capitalizing on Uruguay's solid economic fundamentals. Millicom acquired 100% of Movistar Uruguay's shares for a reported value of US$440 million.

The entry of the Tigo brand is also creating speculation, as the company holds soccer broadcasting rights in other countries and is expected to be a bidder in an upcoming tender by the Uruguayan Football Association (AUF).