Telefónica is closer to consummating its departure from Colombia. In a regulatory move that eliminates the last major obstacle to the withdrawal of the Spanish giant, the Colombian Government made official on December 30, 2025, through Decree 1481, the program to sell the 32.5% state stake in Colombia Telecomunicaciones (Coltel). This authorization to sell more than 1,108 million shares not only marks the State’s withdrawal of capital, but also clears the way for Telefónica to complete the transfer of its participation in the company to Millicom, closing a historic chapter for the Spanish multinational in the country and allowing the consolidation of the new giant Tigo-Movistar.
The Ministry of Finance has set an initial price of 772.38 pesos per share, which is projected to raise close to 856,000 million pesos (approximately 181 million euros). According to the Executive, these resources not only respond to a need for fiscal adjustment, but will be integrated into the national budget to finance social investment programs and other State priorities, framed in “a policy of asset optimization and democratization of share ownership.”
The buyer is Millicom, the Luxembourg conglomerate that owns the Tigo brand, which seeks to consolidate 100% ownership of the resulting entity. To achieve this, he has already agreed the purchase of 67.5% of the shares belonging to Telefónica Spain for 400 million dollars (342.3 million euros at the current exchange rate). In turn, Millicom currently owns 49.98% of Tigo-UNE, Movistar’s main rival, and has secured the acquisition of the stake held by Empresas Públicas de Medellín (EPM), a state-owned company providing public services such as energy, water or sanitation, for another 525 million dollars (449.2 million euros). In total, Millicom’s investment to unify both companies will exceed 1,137 million dollars (972.9 million euros), becoming the largest corporate operation in the sector in the last decade.
However, for this integration to be a full legal and commercial reality, there are regulatory steps that Telefónica and Millicom must overcome. Just a month ago, the Superintendence of Industry and Commerce (SIC) granted conditional approval to the mergerestablishing a series of “locks” or essential requirements. The most relevant is the mandatory return of a portion of the radio spectrum. By joining, the new merged entity would exceed the legal limits allowed by Colombian regulations, which will force the company to reintegrate part of this “signal highway” to the State to avoid an unfair advantage over its competitors and guarantee balance in the market.
Conditions
In addition, the SIC and the Ministry of Information and Communications Technology (ICT) have imposed strict conditions to protect users and smaller competitors. The new company is prohibited from making unilateral or unjustified modifications to contracts with Mobile Virtual Operators (MVNOs), such as Virgin or WOM, which currently depend on their networks to function. They are also required to guarantee that the creation of NetCo – the shared mobile access network that both companies operate in more than 900 municipalities since 2023 – maintains the highest quality standards and does not degrade service in rural areas.
The sale process of the state part will be carried out under the guidelines of Law 226 of 1995, which requires a two-stage process. In the first phase, of a preferential nature, the shares will be offered exclusively to workers, former workers, pensioners and solidarity organizations linked to the company. This stage seeks to encourage employees to have access to the company’s property before large capital. Only once this term has expired will the second phase be opened to the general public and foreign investors, at which time Millicom will be able to complete the purchase of the state share package.
Despite the guarantees offered by the Government regarding the continuity and quality of the service, the operation has generated strong resistance. The WOM operator has filed a formal complaint with the Presidency of the Republic, requesting even more rigorous conditions. The concern is that the union of Tigo and Movistar could give rise to a “duopoly” that, together with Claro, would control more than 90% of the mobile market in Colombia, reducing competition options and potentially affecting long-term rates.
In response, the Government has been emphatic that surveillance on data governance and number portability will be constant. Until all legal, financial and regulatory procedures are closed, Movistar and Tigo will continue to operate independently. Users will see no immediate changes to their plans or coverage, and are guaranteed the right to maintain their current contractual terms.
With this sale, Colombia not only seeks to clean up its accounts, but also to foster a market with larger-scale players that can compete with the infrastructure necessary for the deployment of technologies such as 5G, in an environment where connectivity has become an essential public service for social development, as noted by Gustavo Petro’s Executive.
