Colombia has completed the sale of its remaining 32.5% stake in Colombia Telecomunicaciones (Coltel), the operator behind the Movistar brand in the country, for approximately €205 million, formally ending the State’s decades-long participation in the telecom provider.(Cinco Dias)
The shares were sold through the Colombian Stock Exchange to Millicom Colombia, giving the Luxembourg-based telecom group full ownership of the business and consolidating its control over one of the country’s largest mobile and broadband operators.
Sale Proceeds Fall Short of Telefónica Arbitration Bill
While the divestment brings fresh funds into the Colombian Treasury, it does little to offset the State’s larger financial obligation arising from its long-running investment dispute with Telefónica.
Colombia remains liable to pay Telefónica roughly €508 million following an adverse ruling by the International Centre for Settlement of Investment Disputes (ICSID), after its annulment challenge was rejected earlier this week.
The arbitration stems from a dispute over network infrastructure assets dating back to concession agreements signed in the 1990s. Colombian authorities had previously sought compensation from telecom operators for failing to return physical network assets at the end of their concession contracts. Telefónica challenged the measure, arguing it violated protections under the Spain-Colombia bilateral investment treaty.
ICSID ultimately found Colombia’s conduct disproportionate, with the final award—including interest and legal costs—now more than double the proceeds raised from the Coltel sale.
Net Fiscal Impact Negative for the State
According to officials, the funds from the Coltel transaction will be transferred to the National Treasury, but they cover less than half of the compensation owed to Telefónica.
Market observers note that, from a fiscal perspective, the transaction leaves the Colombian State in a net negative position: while the divestment strengthens short-term public finances and may support connectivity investment programs, the arbitration payment creates an immediate and substantially larger budgetary burden.
The government has stated that compliance with international arbitral awards remains critical to preserving investor confidence and legal certainty, although payment logistics are still being finalized through supplementary budget appropriations.
Millicom Strengthens Position in Colombian Telecoms Market
For Millicom, the acquisition completes its strategic consolidation of the Colombian telecom market following Telefónica’s February 2026 sale of its 67.5% controlling stake in Coltel to the same buyer.
The combined transactions give Millicom full control over Movistar Colombia and pave the way for integration with its existing Tigo operations in the country.
Analysts expect the consolidation to support accelerated investment in 5G and fiber deployment, while improving Millicom’s ability to compete with market leader Claro, controlled by América Móvil.
Regulators at Colombia’s Superintendence of Industry and Commerce continue to monitor the integration process to ensure the merger does not reduce competition or harm consumers.
End of State Ownership in Colombian Mobile Telecoms
The sale also marks the definitive end of Colombian State ownership in the mobile telecom sector.
Officials and industry analysts have welcomed the move as eliminating a longstanding structural conflict in which the government simultaneously acted as sector regulator, spectrum allocator, and market participant.
Millicom is scheduled to complete payment for the State’s shares on April 27, closing the final chapter on nearly three decades of mixed public-private ownership in Colombia’s historic telecommunications operator.
