Telefonica Chile S.A.

What it is

Telefónica Chile, formerly known as Compañía de Telecomunicaciones de Chile (CTC), was the largest fixed-line operator and internet service provider in Chile. At the point of its sale, it led the market in fibre-optic and fixed broadband, held second place in mobile and television, and maintained leadership in business services including mining and cybersecurity solutions.

The company ran four main business lines — fixed telephony, television, corporate data, and a catch-all “others” covering logistics and management — offering broadband, pay TV, local and long-distance calls, data transmission, and equipment leasing. It traded on the Santiago exchange as CTC and also sold its services commercially under the Movistar brand.

Who owns it

The sale transaction comprised 100% of Telefónica’s Chilean business, equivalent to 99.4% of the company. That 99.4% insider stake, visible in the structured data, confirms that the Spanish parent effectively held near-total control throughout the company’s listed life, leaving a public free float of under 1%.

Telefónica sold the Chilean operating business to Millicom and NJJ — both linked to French billionaire Xavier Niel — in a deal that gave NJJ 51% and Millicom 49%, with Millicom running the business day-to-day. The total consideration was USD 1.215 billion (approximately EUR 1.03 billion), paid to Telefónica’s parent in Spain.

Who runs it

With Millicom taking operational control from day one of the February 2026 closing, Juan Vicente Martín Fontelles stepped down, and Carolina Vallejo Londoño became the new general manager.

Before the sale closed, the company had been led by Juan Vicente Martín Fontelles, who replaced long-serving CEO Roberto Muñoz in mid-2025; Marc Murtra chairs the Telefónica S.A. parent in Madrid. Muñoz had served as CEO of Telefónica Chile for 13 of his 20 years at the company before stepping down.

The money, in plain words

Revenue has been shrinking: Telefónica ended 35 years in Chile and closed the asset sale in February 2026. Sales fell from CLP 963 bn (~USD 1.06 bn) in 2023 to CLP 882 bn (~USD 973 m) in the most recent twelve months — a drop of roughly 8.5% over two years (our calculation), reflecting intense competition and a deliberate wind-down posture.

The company lost about CLP 64 bn (~USD 71 m) in the latest year, a net margin of −7.5% — meaning it spent more than it earned from every peso of sales. For every peso shareholders had invested, it lost about 5.8 cents — a return on equity of −5.8%.

Before closing, the company sold its 40% stake in fibre-network joint venture ON*NET Fibra and used all the proceeds immediately to pay down local debt.

What it is doing now

On 10 February 2026, Telefónica formally announced the end of its role as a Chilean operator, closing 35 years of presence in the country. Millicom’s CEO stated the deal gives the new owners “operational control from day one”; Telefónica received USD 50 million in cash at closing, with USD 340 million deferred and up to USD 150 million more tied to future performance milestones.

This was not an isolated move: Telefónica had already exited Colombia, Argentina, Peru, Costa Rica, and Guatemala, removing Latin American currency and political risk as it concentrates on Spain, Brazil, Germany, and the UK. The CTC listing on the Santiago exchange remains, but the operating company now trades under new ownership.

What to watch

• Listing fate: With Millicom/NJJ holding the operating business and free float below 1%, the future of the CTC listed vehicle is unresolved — a delisting or restructuring is the logical next step.
• Millicom’s integration playbook: Millicom has proven a willing buyer of Telefónica’s struggling Latin American units, having already acquired operations in Colombia, Ecuador, and Uruguay for a combined USD 1 bn-plus over two years. Whether it can restore profitability in Chile where the previous owner could not is the key question.
• Deferred payments: Telefónica is owed USD 340 m in deferred payments plus up to USD 150 m more in contingent amounts; the company carried roughly EUR 479 m in net debt at end-2025. How quickly Millicom services the deferred obligations will signal the health of the deal.
• Competition: Rival operator Entel’s share price dipped on news of the transaction, suggesting the market expects a more aggressive Millicom-run Movistar in the years ahead.

This is news, not investment advice.