According to DCD, Millicom has expressed preliminary interest in acquiring Telefónica’s mobile subsidiary in Chile, joining América Móvil and Entel as potential bidders. The Spanish telecom giant initiated a “strategic evaluation process” for the Chilean business back in October 2025, which could lead to a sale. This follows Millicom’s recent completion of purchases for Telefónica’s units in Uruguay and Ecuador in late 2025. Data from GSMA Intelligence shows Chile’s mobile market is fiercely competitive, with Entel leading at 10.3 million connections in Q4 2025, while América Móvil, Telefónica, and Novator each hold between 5 and 5.6 million lines. The initial plan for a joint bid by América Móvil and Entel has been abandoned, opening the door for separate offers and Millicom’s entry as a third major player.
The Regional Consolidation Play
Here’s the thing: this isn’t a one-off deal for Millicom. It’s part of a clear, multi-year pattern. They’ve basically been following Telefónica’s asset sale roadmap across Latin America, snapping up operations in Uruguay and Ecuador and waiting on regulatory approval for a joint acquisition in Colombia. For Millicom, operating under the Tigo brand, this is a classic footprint expansion strategy. They’re buying scaled, operational businesses in new countries, which is often cheaper and faster than building from scratch. For Telefónica, it’s a relentless retreat. They’re cashing out of competitive, capital-intensive markets to free up resources. It’s a tidy, symbiotic relationship that’s now potentially landing in Chile.
Why Chile Is Such a Prize
Look at those subscriber numbers again. This isn’t a market with one dominant giant and a bunch of minnows. You’ve got four players within a hair’s breadth of each other in the #2 through #4 spots. That’s a volatile, and frankly, exhausting, competitive landscape. For any of the bidders—América Móvil, Entel, or Millicom—acquiring Telefónica Chile isn’t just about adding customers. It’s about triggering a seismic shift. The buyer would instantly jump to a solid #2 position, or in Entel’s case, massively extend its lead. That kind of consolidation changes everything: pricing power, network investment leverage, wholesale agreements. The entire economics of the market would be rewritten overnight.
The Complicated Bidding Dynamics
The collapse of the América Móvil-Entel alliance is the wild card. A joint bid would have been a powerhouse move, probably scaring off other contenders. But now? Now we have a potential free-for-all. Each has its own calculus. América Móvil (Claro) wants to solidify its Pan-American presence. Entel, the incumbent, wants to defend its home turf and stifle a stronger #2 competitor. And Millicom? They’re the opportunistic third party, unburdened by existing Chilean market baggage, looking to plant a new flag. This three-way tension probably drives the final price up for Telefónica, but it also guarantees intense regulatory scrutiny. Can Chile’s market handle going from four major players to three? Regulators will be the ultimate decider.
The Bigger Picture for Telefónica
So what’s the endgame for the Spanish telco? They’re executing a massive simplification. Sell the mobile operations across Latin America, and even spin off the digital services arm (Telefónica Tech) as we saw with its sale in Colombia, Mexico, and Chile to Hiberus. This generates a huge war chest. The question is: what’s the priority? Is it shoring up their core markets in Spain, Germany, and Brazil? Is it funding a massive fiber rollout? Or is it about preparing for the next capital-intensive tech shift, like full standalone 5G networks? This Chilean sale is just another piece being moved off the board. The strategy is clear, but the final destination still isn’t.
