Millicom’s UNE Acquisition: Signaling a New Era for Colombian Telecommunications
The Colombian telecommunications landscape shifted dramatically on January 27, 2026, as Medellín’s EPM finalized the sale of its remaining shares in UNE to Millicom Group for a staggering COP 2,099,968,527,878 (approximately $500 million USD). While Millicom already held a majority stake, this complete acquisition isn’t just a financial transaction; it’s a pivotal moment that could reshape competition, investment, and innovation in Colombia’s rapidly evolving digital infrastructure. But what does this full takeover *really* mean for consumers, competitors, and the future of connectivity in the region?
The Deal Details: A Two-Phase Sell-Off
EPM’s divestment of UNE wasn’t a single event. The process unfolded in two phases, beginning in 2025. Initially, 77 shares were allocated to 11 investors – a mix of individuals and companies. This initial phase served to broaden the shareholder base before the final offer from Millicom Colombia Holding S.A.S. The company meticulously approached 22 potential investors, but Millicom was the sole bidder to meet all prequalification requirements, ultimately securing the deal at the minimum approved price of COP 418,741 per share.
Key Takeaway: EPM’s structured approach to selling UNE highlights a strategic effort to maximize value and ensure a smooth transition, despite limited initial interest from a wider pool of investors.
Millicom’s Strategy: Consolidation and Expansion
Millicom’s aggressive pursuit of full ownership of UNE isn’t surprising. The company, operating under brands like Tigo in several Latin American countries, has consistently demonstrated a strategy of market consolidation and expansion. This acquisition allows Millicom to fully integrate UNE’s infrastructure and customer base, streamlining operations and potentially unlocking significant synergies.
“Did you know?” Colombia’s telecommunications market is experiencing a surge in demand for high-speed internet and mobile data, driven by increasing smartphone penetration and the growth of digital services. This makes UNE, with its established network, a particularly valuable asset.
The Impact on Competition
The complete acquisition raises concerns about potential reduced competition. While Colombia’s telecommunications regulator, the CRC (Comisión de Regulación de Comunicaciones), will likely scrutinize the deal for anti-competitive practices, the concentration of market power in Millicom’s hands is undeniable. Smaller players may struggle to compete with Millicom’s scale and resources. However, increased investment in infrastructure, spurred by Millicom’s financial strength, could also benefit consumers in the long run.
Expert Insight: “Consolidation in the telecom sector is a global trend, driven by the need for massive capital investment in 5G and fiber optic networks,” says Dr. Isabella Ramirez, a telecommunications analyst at the University of Los Andes. “The key will be whether Millicom uses its increased market share to innovate and improve services, or simply to raise prices.”
Future Trends: 5G, Fiber, and the Rise of Digital Services
The Millicom-UNE deal is happening against a backdrop of significant technological shifts. Here are some key trends to watch:
The 5G Rollout
Colombia is actively rolling out 5G networks, and Millicom will be a major player in this expansion. 5G promises significantly faster speeds, lower latency, and increased capacity, enabling new applications like autonomous vehicles, smart cities, and immersive virtual reality experiences. The integration of UNE’s infrastructure will be crucial for Millicom to accelerate its 5G deployment.
Fiber Optic Expansion
Fiber optic networks are becoming increasingly important for delivering high-speed internet access. Millicom is likely to invest heavily in expanding UNE’s fiber footprint, particularly in urban areas. This will be essential to meet the growing demand for bandwidth-intensive applications like streaming video and cloud gaming.
The Convergence of Telecom and Digital Services
Telecommunications companies are increasingly looking beyond traditional voice and data services to offer a wider range of digital services, such as mobile payments, cloud storage, and entertainment content. Millicom is well-positioned to capitalize on this trend, leveraging its customer base and network infrastructure to deliver integrated digital solutions.
“Pro Tip:” Keep an eye on Millicom’s partnerships with content providers and fintech companies. These collaborations will likely shape the future of its service offerings.
Implications for Consumers and Businesses
The Millicom-UNE acquisition has several potential implications for consumers and businesses in Colombia:
- Potential for Improved Services: Increased investment in infrastructure could lead to faster speeds, more reliable connections, and a wider range of services.
- Possible Price Increases: Reduced competition could lead to higher prices for some services, particularly in areas where Millicom has limited competition.
- Innovation in Digital Services: Millicom’s focus on digital services could lead to new and innovative offerings for consumers and businesses.
- Opportunities for Businesses: Improved connectivity and access to digital services could create new opportunities for businesses to grow and innovate.
Frequently Asked Questions
Q: Will this acquisition lead to higher prices for internet and mobile services?
A: It’s possible. Reduced competition could allow Millicom to increase prices, but the CRC will be monitoring the situation closely. Increased investment in infrastructure could also offset potential price increases.
Q: What impact will this have on 5G rollout in Colombia?
A: Millicom is likely to accelerate its 5G deployment, leveraging UNE’s infrastructure to expand coverage and improve performance.
Q: What does this mean for other telecommunications companies in Colombia?
A: They will face increased competition from a stronger Millicom, and may need to focus on niche markets or strategic partnerships to remain competitive.
Q: Where can I find more information about the CRC’s oversight of this acquisition?
A: You can visit the CRC’s official website: https://www.crc.gov.co/
The full acquisition of UNE by Millicom marks a turning point for Colombian telecommunications. While challenges remain, the potential for increased investment, innovation, and improved connectivity is significant. The coming years will reveal whether Millicom can successfully integrate UNE and deliver on its promise of a more connected and digital future for Colombia. What are your predictions for the future of telecommunications in Colombia? Share your thoughts in the comments below!