Telefónica’s gradual withdrawal from Latin America could reach Mexico, a market where its Movistar brand still serves around 23 million users but faces persistent profitability challenges.
As part of its 2026–2030 Strategic Plan, the Spanish telecommunications giant is reshaping its global footprint to focus on high-margin, core markets while executing a progressive exit from the region.
The company’s latest 3Q25 financial report and a press conference given by Marc Murtra, Chairman, Telefónica, confirms the sale of its businesses in Argentina, Peru, Uruguay, and Ecuador, as well as a binding agreement to divest Colombia, signaling a strategic refocus away from the region.
According to Bloomberg, Murtra outlined a clear shift under the Transform & Grow plan: the group will concentrate its resources on Spain, Germany, the United Kingdom, and Brazil while pursuing an “orderly and value-creating exit” from other Hispano-American markets, including Mexico.
Movistar Mexico’s challenges stem largely from its 2019 network-sharing deal with AT&T, which reduced capital expenditure but limited operational control and growth capacity. With intensifying competition from Telcel, AT&T Mexico, and emerging mobile virtual network operators (MVNOs), Telefónica’s potential exit could reshape Mexico’s telecom landscape, consolidating power among incumbents or opening opportunities for new digital players.
Within Telefónica’s global structure, the Hispam unit now accounts for just 12% of total revenue and 7% of EBITDA, down 11% and 33% year-on-year, respectively. The divestments already executed in South America reduced regional exposure and aligned with Telefónica’s plan to prioritize higher-margin operations through Telefónica Tech (cybersecurity, cloud, and AI) and Telefónica Infra (fiber and 5G).
Globally, Telefónica reported €26.97 billion (US$31.13 billion) in revenue and €28.2 billion (US$32.55 billion) in net debt at the end of September 2025, reaffirming profitability in its core markets. Yet, for Mexico, the implications go far beyond corporate strategy: a potential exit would mark a turning point for connectivity, competition, and investment in the national telecom sector as the country accelerates 5G deployment and digital inclusion.