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Latin America’s telecommunications sector is experiencing a steady stream of M&A activity. Although the market for sale and leasebacks has narrowed, with most MNO-owned towers now controlled by America Movil’s Sites and Millicom’s Lati, this hasn’t halted deals entirely. Instead, operators are exploring more strategic acquisitions, adapting to the evolving landscape while seeking opportunities to enhance their infrastructure and expand their reach.
In this context, Millicom announced plans to purchase Telefonica’s 67.5% stake in Colombian operator Coltel, along with shares held by the government and minority shareholders, aiming for full control of Tigo UNE. This move would involve an outlay of $1 billion, including cash and assumed debt. While the discussions are ongoing and could fall through, the acquisition of Telefonica’s Coltel stake is particularly notable, given Coltel’s position as Colombia’s second-largest mobile operator with a 25% market share, despite financial challenges. For Telefonica, the sale aligns with its debt-reduction strategy, providing a potential cash boost.
Meanwhile, Brazil’s telecommunications market is seeing major developments, highlighted by the launch of Brazil Infrastructure Company (BIC), which is set to enhance the country’s digital infrastructure. Specialising in buildto-suit assets, BIC aims to bridge the connectivity gap in suburban and rural areas. Additionally, Oi is preparing to transfer several towers and properties to American Tower as part of its debt restructuring plan. Initial approval has been granted by Brazil’s competition regulator, Cade, pending final clearance from Anatel. The deal involves creating a Special Purpose Entity (SPE) for the assets, including towers operated by American Tower since 2013.
Oi is also negotiating similar agreements with other tower companies, such as SBA and IHS. Further illustrating the activity in the region, PTI recently announced the acquisition of 1,300 sites from Liberty Latin America (LLA) across several Caribbean locations, including Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands. The transaction totalled $407 million, translating to approximately $313,076 per tower. This valuation is consistent with those seen by Highline or SBA Communications in Brazil between 2019 and 2021, reflecting the attractiveness of CALA towers and market stability. Notably, the deal includes a build-tosuit component, with PTI committing to developing 500 additional sites over the next five years.
Despite significant expansion in its Brazilian operations over the past year, PTI faces challenges as its MNO partner in Chile filed for Chapter 11 bankruptcy. While the partner expects a positive outcome from restructuring, ongoing site transfers initiated in 2022 complicate PTI’s operations in Chile. América Móvil (AMX) is set to acquire a 91% ownership stake in ClaroVTR from Liberty Latin America, pending regulatory approval in Chile.
Meanwhile, two public tower companies are currently engaged in divestitures. SBA Communications has exited Argentina, selling its sites to an undisclosed buyer, while IHS Towers has arranged to sell its Peruvian sites, with SBA Communications as the purchaser. This trend aligns with a global pattern observed by TowerXchange, where publicly backed towercos retract, while those supported by private capital continue pursuing new opportunities.
In Mexico, significant developments include MX Towers making headlines with Ardian acquiring a 50% co-control interest, bolstered by an asset swap with Movistar for 200 towers and 1,800 km of metro fibre. This strategic move highlights the dynamic consolidation of assets within Mexico’s telecom infrastructure landscape. DigitalBridge, another prominent investor, has explored the potential sale of its towerco Mexico Tower Partners amidst evolving market conditions. The country is gearing up for 5G deployment, offering lucrative opportunities for new tenancies and infrastructure upgrades.
In Colombia, the third-largest telecom market in Latin America, Millicom recently sold its towers to KKR-backed NEXOlatam, showcasing consolidation trends in tower assets. Regulatory actions following the December 2023 5G spectrum auction are accelerating network deployments, with Tigo, Movistar, and others preparing to enhance their infrastructure. WOM, Sociedad Futura Telecall Colombia, and Claro Colombia are actively working to enhance their infrastructure, contributing to the rapid development of telecom networks in the region.
In Peru, SBA Communications has expanded its presence by acquiring 53 towers from IHS Towers, a move that highlights the ongoing consolidation and growth in the tower infrastructure sector. Peru’s telecom industry is also poised for significant regulatory changes, with an upcoming 5G spectrum auction aimed at improving network capabilities and expanding coverage, particularly in underserved rural areas.
These advancements reflect a dynamic M&A landscape across Latin America, fuelled by regulatory reforms, strategic acquisitions, and the need for stronger network infrastructure to meet rising connectivity demands.
In the Caribbean, Phoenix Tower International has boosted regional infrastructure by acquiring key tower portfolios, further shaping the market amidst evolving dynamics. These developments highlight Latin America and the Caribbean as key hubs for telecom investment and expansion, driven by technological progress and the growing demand for reliable connectivity.
Figures included in the report:
1. Breakdown of ownership of Latin America's telecom towers
2: Estimated tower counts of select towerco markets
3: Latin America's top tower companies
4: Footprints of Latin America's towercos
5: Argentina – estimated tower count
6: Bolivia – estimated tower count
7: Brazil – estimated tower count
8: Chile – estimated tower count
9: Colombia – estimated tower count
10: Costa Rica – estimated tower count
11: Ecuador – estimated tower count
12: El Salvador – estimated tower count
13: Guatemala – estimated tower count
14: Mexico – estimated tower count
15: Nicaragua – estimated tower count
16: Panama – estimated tower count
17: Paraguay – estimated tower count
18: Peru – estimated tower count
19: The Caribbean - estimated tower count
20. Major tower transactions in Latin America since 2011
