Millicom agreed to buy Telefonica’s business in Ecuador for $380 million, its second deal for one of the latter’s units in Latin America announced in the space of a month.

The latest agreement is subject to regulatory approval and is part of an ongoing Telefonica strategy to cut its exposure to Latin America in favour 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 footprint in the region and commercial reach.

The operator group’s CEO Marcelo Benitez added the “acquisition reflects our long-term confidence in Latin America and our 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.”

Last month, Millicom struck a deal to buy Telefonica’s Uruguay division for $440 million, having finalised 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 during 2025.