Investment

Millicom plans major investment initiative in Uruguay

Millicom plans major investment initiative in Uruguay

Millicom, a major international operator with a strong focus on Latin America, has officially introduced its Tigo brand in Uruguay and at the same time announced an investment initiative of US$600 million aimed at expanding the country's digital infrastructure.

This capital injection follows the company's acquisition of Movistar and brings Millicom's overall financial commitment to the Uruguayan market to US$1.04 billion. News website BNamericas says that the investment plan will be implemented in the next four years. 

It also quotes Marcelo Benítez, CEO of Millicom, who says that the decision was driven by Uruguay's unique regional conditions, including an advanced digital ecosystem and political stability. 

The acquisition of Telefonica's Movistar-branded business operation in Uruguay was completed last year for US$440 million. As we reported at the time, the deal marked the latest in a series of Telefonica's divestments from Spanish-speaking Latin American markets. Since then, Millicom has focused on modernising about two-thirds of its infrastructure.

The new investment phase will prioritise the expansion of 4G and 5G capacities, with a particular focus on improving connectivity in rural and inland areas to increase commercial penetration.

Millicom currently holds 29% of the local mobile market, serving about 1.6 million customers and operating two data centres. The other mobile operatirs are state-owned Antel, the operator with the largest market share, and Claro (America Movil).

The expansion in Uruguay is part of a broader regional strategy that includes recent acquisitions and consolidations in Ecuador, Chile and Colombia. Uruguay is apparently the first business unit to introduce the Tigo brand after these recent regional acquisitions.



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