Colombia confirms this Wednesday, Feb. 4, a development that will mark a before and after in the telecommunications market: Tigo takes full control of Movistar in the country, formally consolidating a merger that has been the subject of analysis, criticism, and hope since it was announced and approved by the authorities.
The transaction, which profoundly reshapes the sector’s competitive structure, puts an end to Movistar’s operational autonomy as an independent company and ushers in a new chapter in which two giants unite under a single leadership, with implications for millions of users and for market regulation itself.
This corporate move, long anticipated and foreseen after months of regulatory procedures and approvals, not only symbolizes the culmination of a historic agreement between Millicom — owner of Tigo — and Telefonica — owner of Movistar — but also raises questions about the future of competition, prices, and service quality in a sector already marked by a high concentration of players.
Despite the apparent calm the official message seeks to convey to customers, the consequences of this integration go beyond corporate offices and extend into a market that is increasingly narrow in terms of the number of competitors.
Tigo and Movistar merger set to reshape Colombia’s telecom industry
As of today, Tigo assumes operational control of Movistar in Colombia, a process that goes beyond simple administrative management: It marks the consummation of a merger that received approval from the Superintendence of Industry and Commerce (SIC) — public entity that oversees the proper functioning of the Colombian commercial sector — last year, allowing the creation of a conglomerate with a presence in 19 segments of the telecommunications market.
What yesterday were two operators competing for customers are today pieces of the same corporate puzzle. The operational transition has been communicated internally to employees of both companies, and with it come visible changes: The headquarters of the new business group will move to Movistar’s former building, along with key shifts in top management, including the departure of long-standing Movistar leaders in Colombia to take on roles in other regions.
For end users, the message on this first day of the merger is one of stability: There will be no immediate changes to their services, contracts, or current conditions. The plans, rates, and benefits they had with Movistar will remain in place, with no need for additional procedures or urgent adjustments in their communication strategies with the new corporate structure. However, this apparent calm does not eliminate expectations and doubts about what lies ahead in the medium and long term.
The merged company aims to integrate networks and infrastructure, with a particular emphasis on technologies such as 5G, and to roll out convergent offerings that combine mobile services, fixed internet, and television. This forward-looking vision has been one of the arguments put forward by supporters of the transaction to justify the concentration of resources and efforts in a single, more robust operator.
Beyond the merger: competition, concentration, and the regulatory future
While the merger between Tigo and Movistar can be seen as an opportunity to modernize the country’s technological infrastructure, its deepest impact is felt on the competitive landscape. Before this transaction, Colombia’s telecommunications market was already characterized by a high level of concentration: Claro already dominated with a market share close to 44% in mobile telephony, in addition to leading cable television and fixed-line services.
With the integration of Tigo and Movistar, that competitive map is reduced to a structure that, according to analysts, tends to take the shape of a duopoly, in which two dominant forces concentrate the majority of users and services. Indeed, according to June 2025 data, Movistar accounts for 23.3% of the Colombian market and Tigo around 18.2%, making the new giant as big as Claro with 41.5% of market share as of today.
This shift has drawn criticism. Companies in the sector, such as WOM Colombia, have publicly expressed their opposition, warning that a market structure with fewer competitors may lead to higher prices, less innovation, and fewer real options for consumers. Some have even taken their concerns into the political arena, sending letters to the president of the republic calling for a deeper review of the impact of this integration.
The regulatory authority, for its part, approved the merger with certain conditions aimed at mitigating possible negative effects, such as the obligation to guarantee wholesale access to the integrated network for new entrants and the oversight of strategic contractual adjustments.
Meanwhile, the process also includes the sale of the shares that the Colombian state held in Movistar, which would complete the withdrawal of state participation in the company and ensure that full control remains in private hands.
The government set a price per share and could receive a sum exceeding 855 billion pesos (approximately US$235 million) from this transaction, although the destination of those resources remains a matter of public and political debate.
The future of Colombian telecommunications and free competition
The merger between Tigo and Movistar, which was completed today, is an event that reshapes how Colombians consume telecommunications services, how large companies are structured in a globalized market, and what role regulators play in balancing economic interests with consumer rights.
While users will not feel drastic changes on this very day, the consequences of this union will become evident over the coming months, both in the range of products offered and in commercial and competitive strategies.
In a sector so central to digital life — the phone and connectivity of everyone — the consolidation of power in a few hands is a challenge that, for economic experts, makes it necessary to closely monitor every move and to demand transparency and conditions that favor society as a whole.