Movistar is preparing to exit the Mexican market and other Latin American countries. Marc Murtra, the company’s CEO, announced that Telefónica will close all its operations in Latin America as part of the strategic growth plan adopted in 2019. With this decision, and after selling its subsidiaries in Argentina, Peru, Uruguay, Ecuador, and Colombia (the latter two still subject to regulatory approval), the Spanish telecommunications operator is also preparing to leave Mexico, Chile, and Venezuela.
The executive declined to specify the date on which he expects to finalize the exit from the Latin American markets, in order not to interfere with negotiations with potential buyers. Murtra simply reiterated that “Telefónica has to be a European operator, because three of our four main markets are in Europe, but with a global scale, comparable to the American and Chinese giants, and with sustainable profitability.”
The company’s strategic plan, known as Transform & Grow, aims to strengthen operations between 2026 and 2030 in four key markets: Spain, the United Kingdom, Germany, and Brazil.
Telefónica Hispanoamérica’s performance has shown a steady decline in recent quarters. According to the most recent financial report, the unit recorded revenues of €1.017 billion during the third quarter of the year, a 3.6% decrease compared to the same period last year. Year-to-date, it has accumulated €3.152 billion, representing a 3.1% decrease compared to the first nine months of last year.
Murtra asserted that the decision to withdraw from countries like Venezuela is not due to political pressure. “Each nation has its own particularities. We are not a political actor, nor do we issue opinions in that arena. Simply put, based on our business plan, we reaffirmed our decision to leave Latin America,” he emphasized.
What will happen to Telefónica Movistar customers in Mexico?
As of last July, Telefónica Movistar México had a customer base of more than 23.5 million users, to whom it offers fixed and mobile connectivity services through 4G and 5G networks. For now, there is no official information regarding the fate of its customers in the country.
Last week, it was reported that the Spanish company was in talks with Beyond One, owner of the mobile virtual network operator (MVNO) Virgin Mobile Mexico, to sell its local business for more than 500 million euros. Neither party has confirmed nor denied this information.
However, analysts anticipate that, if the deal goes through, Movistar Mexico users would be automatically transferred to Virgin Mobile’s network, keeping their phone number and SIM card, as has happened in other Latin American markets where Telefónica has already ceased operations.
Despite having a solid user base, Movistar’s market share in the Mexican mobile phone and internet market has declined in recent years, due to the historical dominance of certain companies and the sustained growth of mobile virtual network operators (MVNOs).
According to official figures, at the end of the third quarter of 2024, the mobile market in Mexico consisted of 148.3 million lines. Of these, 56.18% belonged to Telcel, 15% to AT&T, and 14.57% to Telefónica. MVNOs, as a whole, represented 14.22% of the total.
Movistar Mexico has been competing directly with MVNOs since 2020, after signing an agreement with AT&T to use its mobile network following the sale of its cell tower infrastructure in 2011. In this context, although MVNOs represent only 4.6% of the national mobile market, their revenues increased by 40.9% in the first quarter of 2025, “driven by the constant expansion of their user base,” according to a report by the consulting firm The CIU.
Source: es.wired
