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The Tigo cell phone brand arrives in Uruguay
Tigo may also be interested in football broadcasting rights
The Spanish telecommunications group Telefónica (Movistar) announced its exit from the Uruguayan market after 20 years, selling its operations to the multinational Millicom, which operates under the Tigo brand. The Uruguayan government of President Yamandú Orsi authorized the transaction following favorable technical evaluations from regulatory bodies (Ursec and Dinatel).
Telefónica thus closed its operation with 1.4 million mobile customers, representing 29% of the market. The company said it has invested more than US$700 million in infrastructure and spectrum during its presence in Uruguay.
The divestment is in line with Telefónica’s strategy of reducing its presence in Latin America. “Today, the operation closes with 1.4 million mobile customers, which represents 29% of the market, providing coverage to more than 97% of the population with the most available network in the country and leader in customer satisfaction”, stated the company.
In turn, Millicom’s CEO, Marcelo Benítez, described the acquisition as a “fundamental milestone” in the company’s growth strategy in Latin America, taking advantage of Uruguay’s solid economic fundamentals. Millicom acquired 100% of the shares of Movistar Uruguay for a reported value of US$440 million.
The entry of the Tigo brand also generates speculation, as the company holds the rights to broadcast football in other countries and is expected to participate in an upcoming tender by the Uruguayan Football Association (AUF).