Renowned company in the country says goodbye after 20 years of operations: this will be its future
In what marks the end of an era for the telecommunications sector in the country, Telefónica has today formalized its definitive exit from the Colombian market. After more than two decades of operation under the Movistar brand, the Spanish multinational has completed the sale of its majority stake in Colombia Telecomunicaciones (Coltel) to the Luxembourg-based group Millicom, owner of Tigo.
TL;DR
- Telefónica has completed its definitive exit from the Colombian market after over 20 years of operation under the Movistar brand.
- The Spanish multinational sold its majority stake in Colombia Telecomunicaciones (Coltel) to Millicom, owner of Tigo, for approximately €182 million.
- This divestment reduces Telefónica's net financial debt by nearly €1.55 billion.
- The exit is part of Telefónica's 'focus strategy' to prioritize its most profitable markets: Spain, Brazil, Germany, and the UK.
- Challenges such as regulatory issues, high spectrum taxes, and intense price competition in Colombia eroded profit margins.
- The integration of Movistar and Tigo will create a major player in the Colombian market, capable of competing with Claro.