Millicom considering entering Mexico

Millicom is considering a launch of its Tigo mobile brand in Mexico as competition improves following new regulation.

With AT&T launching a Mexican unit last year, America Movil’s dominance is weakening slightly, allowing further space for new entrants. Millicom has a strong background in emerging markets, with operations across Africa and an established presence in Latin America that it is now reportedly seeking to bolster.

Millicom has a strong foothold in Paraguay and is increasing its operations in Colombia, having won 4G spectrum licences in both of these markets. It also operates in 6 other Latin American countries; if it added Mexico to this list, it would become the second overseas operator to do so following the regulatory reforms made in 2013.

US operator AT&T moved into Mexico in 2015 with the acquisition of mobile units Iusacell and Nextel Mexico for $4.4 billion. To compete with Telefonica and market leader America Movil, the operator is planning to spend $3 billion on improving its high-speed internet offering. MVNOs have also launched in Mexico following the reforms, including a service from Virgin Mobile.

Mauricio Ramos, CEO of Millicom, has reportedly stated that the company is aiming to become the number two cable provider in Latin America after America Movil. A Mexican launch of its successful Tigo Money service is also likely.

Currently America Movil leads the way in Mexico with 73.5 million subscribers, followed by Telefonica’s 23.9 million. AT&T had around 8.5 million subscribers at the end of Q4 2015.

MORE ARTICLES YOU MAY BE INTERESTED IN...


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.