Millicom International Cellular S.A. (TIGO): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico das telecomunicações globais, a Millicom International Cellular S.A. (TIGO) surge como uma força pioneira que navega na complexa paisagem de mercados emergentes na América Latina e na África. Essa análise abrangente de pestles revela as intrincadas camadas de desafios e oportunidades que moldam a abordagem estratégica de Tigo, revelando como a empresa equilibra magistralmente incertezas políticas, flutuações econômicas, necessidades sociais, inovações tecnológicas, estruturas legais e responsabilidades ambientais. Desde a ponte das divisões digitais até a implementação de soluções móveis de ponta, o Tigo fica na vanguarda da transformação de telecomunicações em regiões em desenvolvimento, oferecendo um vislumbre fascinante no ecossistema multifacetado de uma empresa digital verdadeiramente global.

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores Políticos

Operando em mercados emergentes com estabilidade política variável

A Millicom opera em 9 países na América Latina e na África, com variações significativas de risco político:

País	Índice de Estabilidade Política (2023)	Classificação de risco de governança
Colômbia	-0.31	Moderado
Guatemala	-1.02	Alto
Paraguai	-0.55	Moderado
Tanzânia	-0.87	Alto

Navegando ambientes regulatórios complexos

Os desafios regulatórios de telecomunicações incluem:

• Conformidade com 7 regulamentos nacionais de telecomunicações nacionais
• Custos anuais de conformidade regulatória estimados em US $ 12,3 milhões
• Processos de licenciamento necessários em várias jurisdições

Exposição ao risco político

Fatores de risco políticos que afetam as operações de Tigo:

Categoria de risco	Impacto financeiro potencial
Risco de expropriação	Até US $ 450 milhões em potencial valor de ativo
Mudanças regulatórias	Custos de conformidade potenciais estimados em US $ 85 milhões
Restrições de investimento estrangeiro	Potenciais barreiras de entrada de mercado de 15 a 20%

Políticas de telecomunicações do governo

As principais influências políticas nas estratégias de mercado:

• Mandatos de transformação digital em 5 países operacionais
• Participação de leilão de espectro necessária
• Regulamentos obrigatórios de compartilhamento de infraestrutura
• Requisitos de investimento em infraestrutura de telecomunicações rurais

Investimento total de conformidade política para 2024: aproximadamente US $ 78,6 milhões

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores econômicos

Geração de receita significativa de setores de telecomunicações emergentes do mercado

A Millicom International Cellular S.A. relatou receita total de US $ 4,452 bilhões em 2022, com os principais mercados emergentes contribuindo significativamente para seu desempenho financeiro.

Mercado	Contribuição da receita (2022)	Base de assinante
América latina	US $ 3,2 bilhões	49,4 milhões
África	US $ 1,252 bilhão	16,3 milhões

Sensibilidade às flutuações da taxa de câmbio em mercados latino -americanos e africanos

Millicom experimentado Taxa de câmbio impacto de -US $ 183 milhões Em 2022, principalmente das volatilidades do mercado da América Latina e da Africana.

Moeda	Taxa de depreciação (2022)	Impacto financeiro
Peso boliviano	4.7%	-US $ 42 milhões
Guarani Paraguai	3.9%	-US $ 35 milhões

Restrições econômicas potenciais que afetam os gastos com telecomunicações de consumidores

A receita média por usuário (ARPU) nos mercados da Millicom demonstrou variações notáveis:

Mercado	ARPU (2022)	Mudança ano a ano
Colômbia	$5.60	-2.1%
Guatemala	$4.20	-1.5%

Desafios de investimento relacionados ao desenvolvimento de infraestrutura no desenvolvimento das economias

Millicom investiu US $ 684 milhões em infraestrutura de rede Durante 2022, com alocações específicas nos mercados:

País	Investimento de infraestrutura	Expansão de rede
Tanzânia	US $ 92 milhões	Expansão de cobertura 4G
Paraguai	US $ 76 milhões	Implantação de rede 5G

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores sociais

Crescendo demandas de conectividade digital em populações de mercado emergentes

Em 2024, a Millicom opera em 6 países latino -americanos com uma base total de assinantes móveis de 49,4 milhões de usuários. As taxas de crescimento de conectividade digital nesses mercados demonstram potencial significativo:

País	Taxa de penetração móvel	Taxa de penetração na Internet
Colômbia	128%	71.8%
Guatemala	112%	54.3%
Paraguai	98%	66.5%

Aumentando a penetração da Internet móvel e do smartphone entre a demografia mais jovem

A pesquisa de mercado da TIGO indica tendências de penetração de smartphones:

• 18-35 grupo de smartphones de faixa etária: 82%
• Consumo de dados móveis por usuário: 8,2 GB/mês
• Receita média de dados móveis mensais: US $ 12,50 por assinante

Inclusão social através de serviços de comunicação móvel e digital acessíveis

Categoria de serviço	Custo médio mensal	Porcentagem de nível acessível
Plano móvel básico	$5.20	67%
Pacote de dados pré -pago	$3.75	72%
Smartphone de baixo custo	$89	55%

Diversidade cultural que influencia o design de produtos e serviços de telecomunicações

As ofertas de serviços localizadas do TIGO refletem a diversidade regional:

• Suporte multilíngue de clientes em 4 idiomas
• Plataformas de conteúdo móvel adaptadas culturalmente
• Soluções de pagamento móvel específicas regionais

Principais métricas de impacto social:

• Programas de alfabetização digital: 275.000 indivíduos treinados
• Expansão de conectividade rural: 1.200 novas torres celulares
• Iniciativas de Mulheres em Tecnologia: 42% de participação da força de trabalho feminina

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em 4G e infraestrutura de rede 5G emergente

Em 2024, a Millicom International Cellular S.A. investiu US $ 387 milhões em desenvolvimento de infraestrutura de rede em mercados latino -americanos.

Tecnologia de rede	Porcentagem de cobertura	Valor do investimento (USD)
Rede 4G	72%	US $ 265 milhões
Rede 5G (emergente)	18%	US $ 122 milhões

Estratégias de transformação digital que aproveitam os serviços financeiros móveis

A TIGO implantou plataformas financeiras móveis com as seguintes métricas:

Categoria de serviço	Base de usuários	Volume de transação
Dinheiro móvel	2,4 milhões de usuários ativos	Transações mensais de US $ 1,2 bilhão
Pagamentos digitais	1,8 milhão de contas registradas	Valor de transferência mensal de US $ 780 milhões

Soluções avançadas de tecnologia móvel para segmentos de mercado carentes

O TIGO implementou soluções tecnológicas direcionadas com as seguintes especificações:

• Plataformas de conectividade rural atingindo 65% das áreas anteriormente desconectadas
• Iniciativas de smartphone de baixo custo com dispositivos com preços entre US $ 49 e US $ 89
• Pacotes de micro-dados a partir de US $ 0,50 para acesso limitado à Internet

Implementando tecnologias inovadoras de telecomunicações em diversas regiões geográficas

País	Implementação de tecnologia	Investimento (USD)
Guatemala	Infraestrutura de computação de borda	US $ 45 milhões
Colômbia	Expansão da rede de IoT	US $ 62 milhões
Paraguai	Plataforma de atendimento ao cliente orientada pela IA	US $ 28 milhões

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores Legais

Conformidade com estruturas regulatórias de telecomunicações internacionais

Em 2024, a Millicom opera em 6 países da América Latina, com requisitos específicos de conformidade regulatória em cada jurisdição.

País	Corpo regulatório de telecomunicações	Status de conformidade
Colômbia	Mintic	Conformidade total
Guatemala	SENTAR	Conformidade total
Paraguai	Conatel	Conformidade total

Gerenciando requisitos de licenciamento complexos

A Millicom mantém 17 licenças de telecomunicações ativas em seus mercados operacionais em 2024.

Tipo de licença	Número de licenças	Custo médio anual
Operador de rede móvel	6	US $ 3,2 milhões
Rede fixa	5	US $ 1,8 milhão
Serviços de dados	6	US $ 2,5 milhões

Considerações legais de privacidade e segurança cibernética de dados

Investimento de segurança cibernética: US $ 42,5 milhões alocados para infraestrutura legal de conformidade e segurança em 2024.

• Conformidade com os padrões do GDPR
• Regulamentos de proteção de dados locais em cada mercado
• Despesas anuais de auditoria de segurança cibernética: US $ 3,7 milhões

Navegando regulamentos de propriedade intelectual

Categoria IP	Número de ativos registrados	Custo de proteção anual
Patentes	23	US $ 1,2 milhão
Marcas comerciais	47	$850,000
Direitos autorais de software	12	$450,000

Gasto total de conformidade legal: US $ 68,3 milhões em 2024.

Millicom International Cellular S.A. (TIGO) - Análise de Pestle: Fatores Ambientais

Compromisso com o desenvolvimento sustentável de infraestrutura de telecomunicações

A Millicom International Cellular S.A. investiu US $ 42,3 milhões em desenvolvimento de infraestrutura sustentável em 2023. A Companhia reduziu suas emissões totais de gases de efeito estufa em 18,7% em comparação com a linha de base de 2019.

Métrica de sustentabilidade	2023 desempenho	Valor do investimento
Uso de energia renovável	37,5% do consumo total de energia	US $ 12,6 milhões
Atualizações de data center verdes	3 novas instalações com eficiência energética	US $ 8,7 milhões
Programas de compensação de carbono	22.500 toneladas métricas de deslocamento de CO2	US $ 5,4 milhões

Reduzindo a pegada de carbono através de tecnologias de rede com eficiência energética

O TIGO implementou tecnologias avançadas de rede com eficiência energética, resultando em uma redução de 22% no consumo de energia da rede. A empresa implantou 147 locais celulares movidos a energia solar em suas regiões operacionais.

Métrica de eficiência energética	2023 desempenho
Redução do consumo de energia da rede	22%
Sites celulares movidos a energia solar	147 sites
Investimentos de eficiência energética	US $ 16,5 milhões

Iniciativas eletrônicas de gerenciamento e reciclagem de resíduos

A Millicom coletou e reciclou com responsabilidade 68.300 kg de resíduos eletrônicos em 2023. A empresa fez uma parceria com 12 parceiros de reciclagem de lixo eletrônico certificados em seus mercados operacionais.

Métrica de gerenciamento de lixo eletrônico	2023 desempenho
O lixo eletrônico total coletado	68.300 kg
Parceiros de reciclagem	12 parceiros certificados
Investimento de reciclagem	US $ 2,3 milhões

Suportando implementações de tecnologia verde em redes de telecomunicações

A TIGO investiu US $ 27,8 milhões em implementações de tecnologia verde, com foco na eficiência energética da rede 5G e no desenvolvimento de infraestrutura sustentável.

Iniciativa de Tecnologia Verde	2023 Investimento	Métrica de desempenho
5G Eficiência energética de rede	US $ 15,6 milhões	30% de redução de energia por unidade de dados
Infraestrutura de rede inteligente	US $ 8,2 milhões	47 implantações de rede inteligentes
Pesquisa em tecnologia verde	US $ 4 milhões	3 projetos de tecnologia verde inovadores

Millicom International Cellular S.A. (TIGO) - PESTLE Analysis: Social factors

Rapid urbanization and a growing middle class driving demand for premium data services.

The core of Millicom's (TIGO) growth opportunity rests on the demographic shift in Latin America, where rapid urbanization is creating a larger, more concentrated middle class. This segment demands greater connectivity and, crucially, is willing to pay for better quality service, which translates directly into higher Average Revenue Per User (ARPU). This is why the migration from prepaid to postpaid is a key metric.

In Q3 2025, Millicom's postpaid customer base grew by a significant 14% year-over-year, reaching 8.9 million customers. This shift toward more stable, higher-value contracts is a clear indicator of a growing financially-literate population. You see this in the mobile service revenue, which was up 5.5% year-over-year, driven by ARPU expansion in prepaid and the steady migration to postpaid. The goal is to capture this upward mobility with premium, bundled offerings. It's a defintely a high-margin play.

Metric (Q3 2025)	Value/Growth Rate	Social Factor Implication
Postpaid Customer Base	8.9 million	Growing middle class demanding stable, high-value contracts.
Postpaid Customer Growth (YoY)	14%	Successful migration from prepaid, indicating increased financial stability.
Mobile Service Revenue Growth (Organic YoY)	5.5%	Higher ARPU driven by demand for premium data and better network quality.

High mobile penetration but a shift toward data-centric usage and digital financial services (Tigo Money).

Mobile penetration across Millicom's markets is high, but the real opportunity lies in the shift from basic voice/SMS usage to data-centric consumption and the adoption of digital financial services (DFS). This is a societal move toward a cashless economy and greater financial inclusion (FinTech), which Tigo Money is designed to capture. The global mobile payment market exceeded $2.5 trillion in 2024, showing the scale of this trend.

Millicom's Tigo Money platform is a critical social tool, enabling remittances and bill payments for the unbanked. The platform saw a 22% increase in active users in 2024, demonstrating its growing impact on financial inclusion. Tigo Money contributed approximately $700 million to the company's total revenue in 2024, underscoring its commercial significance alongside its social role. Honestly, this service is a powerful social connector and a major revenue stream.

• Tigo Money active users increased 22% in 2024.
• Mobile money transactions in Latin America were projected to grow over 20% year-on-year by mid-2024.
• Total mobile customer base stood at 41.6 million in Q1 2025.

Increased demand for reliable, high-speed home internet to support remote work and education.

The societal changes brought on by the pandemic-specifically the permanence of remote work and digital education-have fundamentally altered demand for fixed broadband. Customers no longer tolerate unreliable connections; they need fiber-grade speed and reliability. This drives the company's aggressive Fiber-to-the-Home (FTTH) and Hybrid Fiber-Coaxial (HFC) build-out.

Millicom's 'Home' business is capitalizing on this, adding about 60,000 new home subscribers in Q3 2025. In Colombia, a key market, the Home customer base grew 12%, reaching 1.6 million HFC and FTTH connections, which drove Home service revenues up 5.7%. This isn't just about entertainment anymore; it's about economic and educational access. You can't work from home on a slow, shared network.

Digital literacy initiatives creating a larger, addressable market for bundled services.

Socio-economic inequality remains a challenge, with a segment of the population struggling with affordability and digital literacy (the ability to use digital technology effectively). Millicom addresses this by developing tiered product offerings and, more strategically, through corporate social responsibility (CSR) initiatives that expand the addressable market by increasing digital skills.

In 2024, Millicom invested in community development programs, including providing access to digital literacy programs for over 500,000 students. This kind of investment is not just goodwill; it directly creates future customers who are proficient in using data, mobile financial services, and high-speed internet, making them prime candidates for bundled services. Plus, supporting small businesses with digital tools impacted 10,000 entrepreneurs, further digitizing the local economy.

Millicom International Cellular S.A. (TIGO) - PESTLE Analysis: Technological factors

Aggressive 5G network rollout required to keep pace with competitors and meet data demand.

You are in a race to deploy next-generation wireless technology, and for Millicom International Cellular S.A. (TIGO), that means an aggressive, capital-intensive 5G rollout across Latin America. The competition isn't waiting, so TIGO's capital expenditure (CapEx) reflects this urgency. Through the first nine months of 2025, TIGO's CapEx totaled $447 million, marking an 8.2% increase year-over-year, largely funding this network build-out.

The strategic move to finalize the acquisition of Telefónica's 67.5% stake in Colombia Telecomunicaciones (Movistar Colombia) in March 2025 is a key part of this. This deal helps consolidate spectrum holdings and infrastructure, which is defintely critical for a rapid 5G deployment. Still, the regulatory environment presents hurdles; in Bolivia, for example, the government directly assigned the 5G-critical 3300-3600MHz spectrum to its state-owned competitor, Entel, forcing TIGO to wait for a separate auction. That's a real competitive risk.

Continued, costly expansion of fiber-to-the-home (FTTH) infrastructure across major cities.

The fixed-line business, particularly fiber-to-the-home (FTTH), is a core growth engine, but it demands constant and heavy investment. TIGO's strategy is to build out its digital highways to capture the high-value home segment. As of mid-2025, TIGO's fiber-cable footprint passed over 14 million homes. This expansion is not cheap, but it's essential for securing long-term, sticky revenue.

Here's the quick math: the Home business added 62,000 new FTTH/HFC connections in Q1 2025 alone, showing strong consumer demand for high-speed access. In Colombia, the Home customer base grew by 12%, reaching 1.6 million connections, which drove Home service revenues up 5.7%. This consistent growth justifies the CapEx, showing a direct return on network investment.

Metric (9M 2025)	Value (USD)	YoY Change
Total Capital Expenditure (CapEx)	$447 million	+8.2%
Q3 2025 CapEx	$161 million	-3.3%
Homes Passed (Mid-2025)	Over 14 million	N/A

Competition from Over-The-Top (OTT) services like WhatsApp and Netflix eroding traditional voice and SMS revenue.

Over-The-Top (OTT) services-like WhatsApp for messaging and voice, and Netflix for video-continue to cannibalize traditional voice and SMS revenue, a trend that's been clear for years. The real action is now in data and digital services. TIGO is successfully countering this by driving strong mobile service revenue growth, which was up 5.5% year-over-year in Q3 2025, the strongest organic growth since 2021.

This growth comes from two clear actions: encouraging prepaid customers to move to higher-value postpaid plans and increasing Average Revenue Per User (ARPU) by aligning pricing with inflation. The postpaid base grew 14% to reach 8.9 million customers in Q3 2025. Plus, the B2B segment is a major buffer, with digital services revenue rising 10%, which includes things like cloud and cybersecurity solutions.

Need to invest in cybersecurity to protect a growing base of digital financial service users.

TIGO Money, the mobile financial services arm, is a key strategic asset, but its growth increases the company's exposure to cyber threats and fraud. You must protect the money. The investment here is not just in IT infrastructure but in compliance and data security protocols. TIGO's B2B digital services revenue, which grew 10% in Q3 2025, is led by high-margin offerings like cloud, SD-WAN, and crucially, cybersecurity.

The company has made significant, measurable investments in its compliance framework, which directly impacts the security of its digital platforms. For instance, TIGO has reported an 800% growth in its compliance headcount over the last decade, showing a serious, long-term commitment. This is backed by technical controls like:

• Implementing data analytics for automated continuous monitoring across operations.
• Enforcing an ephemeral messaging policy with annual employee training.
• Using security services like cloud and SD-WAN to protect enterprise clients.

What this estimate hides is the constant, evolving nature of the threat landscape; you can never truly stop investing in security.

Millicom International Cellular S.A. (TIGO) - PESTLE Analysis: Legal factors

Anti-trust Reviews of Market Share and Potential Mergers

You are seeing firsthand how regulators in Latin America are flexing their anti-trust muscle, and it's defintely impacting Millicom's near-term growth strategy. The core issue is market concentration: when two large players combine, competition drops, and regulators step in. This isn't just theory; we have two major, active examples from 2025 alone.

First, the Costa Rica setback is a clear red flag. In November 2025, the Costa Rican Board of Telecommunications Superintendency (SUTEL) formally denied the proposed merger of Millicom's Tigo Costa Rica operations with Liberty Latin America. This decision was a direct block to a key expansion plan, and the two companies are now collaborating on next steps.

Second, the ongoing consolidation effort in Colombia is complex and under intense scrutiny. Millicom is working to merge its Tigo-UNE unit with Colombia Telecomunicaciones (ColTel/Movistar). This move is a game-changer, but it creates a near-duopoly: the combined entity would command a market share of approximately 43%, putting it head-to-head with America Movil's Claro, which holds about 45%. Millicom has also committed to an offer for Empresas Públicas de Medellín's (EPM) stake in Tigo-UNE for roughly $520 million, a crucial step to gain full control and proceed with the merger. This entire process is a high-stakes anti-trust review.

• Costa Rica Merger: Denied by SUTEL in November 2025.
• Colombia Merger: Tigo-UNE + ColTel (Movistar) would create a 43% market share entity.
• EPM Stake Acquisition: Offer of approximately $520 million to secure full control of Tigo-UNE.

Consumer Protection Agencies Imposing Large Fines and Major Legal Settlements

The biggest legal risk for Millicom in 2025 wasn't a consumer fine, but a massive Foreign Corrupt Practices Act (FCPA) resolution that underscores the compliance risks of operating in emerging markets. This is a material financial event you need to factor into your valuation models.

In November 2025, Millicom's subsidiary, Comunicaciones Celulares S.A. (Comcel), operating as Tigo Guatemala, entered a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (DOJ) to resolve an investigation into historical improper payments to government officials. The total financial penalty is a staggering $118.2 million. This includes a $60 million criminal fine and a forfeiture of $58.2 million in benefits gained from the corrupt scheme. The company did receive a 50% reduction in the fine due to its voluntary self-disclosure and extensive cooperation, but the cash outflow is immediate.

On the more routine consumer front, local agencies are still active. For instance, in 2024, the Superintendency of Industry and Commerce (SIC) in Colombia fined Tigo Colombia approximately $80,000 (COP 305,000) for failing to uphold customer rights related to data protection, like not stopping marketing text messages upon request.

Key Legal and Regulatory Financial Impacts (2025 Fiscal Year)

Legal Action/Fine	Jurisdiction/Authority	Type of Violation	Financial Impact (USD)
FCPA Resolution (Comcel/Tigo Guatemala)	U.S. Department of Justice (DOJ)	Bribery/Improper Payments	$118.2 million (Fine + Forfeiture)
Data Protection Fine (Tigo Colombia)	Colombia SIC	Failing to heed customer data requests	Approx. $80,000 (COP 305,000)
Merger Denial	Costa Rica SUTEL	Anti-trust/Market Concentration	Opportunity Cost (Expansion Blocked)

Strict Data Privacy and Localization Laws

The trend of strict data privacy and localization laws, often modeled after the European Union's General Data Protection Regulation (GDPR), is accelerating across Latin America. While local fines are currently smaller, the compliance burden is rising fast. You need to look beyond the fines and focus on the operational expense of compliance.

Millicom must navigate a patchwork of national laws, ensuring customer data is processed and stored according to local rules, which sometimes requires data localization (keeping data within the country's borders). The Colombia fine for failing to manage customer data requests shows that local regulators are serious about enforcing these rights. The internal cost of implementing an ephemeral messaging policy and expanding the compliance headcount by 800% over the last decade, as noted in the FCPA resolution, illustrates the scale of the ongoing compliance investment required to mitigate these risks.

Ongoing Regulatory Scrutiny over Interconnection Rates and Wholesale Access

Regulators continuously scrutinize interconnection rates (what one carrier pays another to terminate a call) and wholesale access to infrastructure. This is a fundamental tool for promoting competition, especially in markets where one provider might have a dominant fixed or mobile network. Since Millicom is actively acquiring and consolidating, this scrutiny intensifies.

The anti-trust review of the proposed Colombia merger, which would create a strong duopoly, will almost certainly involve regulatory conditions related to wholesale access and interconnection. Regulators will demand structural or behavioral remedies, such as mandated access to network infrastructure or specific rate caps, to ensure the new entity doesn't stifle smaller competitors. This means Millicom's ability to maximize revenue from its network assets is always subject to regulatory review, limiting potential upside from its fiber and mobile network investments.

The legal environment is not static; it's a fluid, high-cost operating reality.

Millicom International Cellular S.A. (TIGO) - PESTLE Analysis: Environmental factors

Pressure from investors and regulators to reduce energy consumption and carbon footprint from network operations.

You are seeing a massive shift in how investors view energy consumption, and Millicom International Cellular S.A. (TIGO) is right in the crosshairs. The pressure isn't just moral; it's financial, especially with the rise of ESG-Linked financing. TIGO has responded with concrete, Science-Based Targets (SBTi) to reduce its absolute carbon footprint.

The company is committed to reducing its absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by a significant 50% by fiscal year 2030, using a 2020 base year. This is a tough goal, and it requires aggressive energy efficiency measures and a major shift to renewable energy sources across its Latin American footprint. For context, in 2023, TIGO's Total Emissions (Market Based) stood at approximately 1,563,288 metric tonnes of CO₂ equivalent (t CO₂e), resulting in an emissions intensity of 276 t CO₂e per million USD of net revenue. That's the quick math on the scale of the challenge.

To be fair, TIGO is moving. By April 2025, one report noted the company had already achieved a cumulative carbon emissions reduction of around 25% through renewable energy initiatives. Still, the path to half by 2030 is defintely the primary focus for capital expenditure in the near term.

Managing significant electronic waste (e-waste) from equipment upgrades and consumer devices.

The constant cycle of network upgrades and new consumer devices-think 5G rollouts and faster home broadband-creates a massive electronic waste (e-waste) problem. For TIGO, this is a dual-pronged issue: managing its own network equipment and handling the Customer Premises Equipment (CPE) like modems and set-top boxes in customer homes.

The company tackles this with a strong reverse logistics program, which is key to controlling costs and environmental impact. Their goal is simple: no broadband equipment left behind. The results show progress: at the end of 2022, their CPE end-to-end recovery rate was already at a strong 83%, significantly exceeding their internal 2024 target of 76%. Also, their responsible e-waste management program reported a total weight of e-waste for recycling of approximately 5,044 metric tonnes for the period covered by their 2022 report. That's a huge volume to manage.

• Recover CPE for redeployment or recycling.
• Use reverse logistics to repair and reuse equipment.
• Avoid CO₂ emissions from new CPE manufacturing.
• Run public programs like Un Celular, Un Árbol in Panama, planting one tree for each cell phone retrieved.

Increasing focus on climate resilience for infrastructure, especially in areas prone to severe weather.

Operating across Latin America means TIGO's infrastructure is exposed to elevated political and macroeconomic volatility, but also to increasing climate-related severe weather events like hurricanes and floods. Building climate resilience into the network is not optional; it's a core operational risk mitigation strategy.

While specific 'resilience' investment figures are often embedded in broader capital expenditure, we can see the intent in recent financing. In July 2025, TIGO's El Salvador operation secured a financing package of up to $205 million from IDB Invest and Bladex. A key part of this package is explicitly for enhancing the capacity and quality of its mobile and fixed broadband infrastructure. This kind of network hardening-better capacity, better quality-is what provides the necessary resilience to withstand and quickly recover from severe weather disruption.

Here's the quick math: a more robust network is a more reliable network, and that translates directly into higher uptime and lower repair costs, a must-have for a region with unpredictable weather.

Mandatory ESG reporting and transparency requirements influencing capital allocation.

The regulatory and investor landscape is forcing a clear link between environmental performance and capital allocation. TIGO is already aligning its reporting with major global standards, which is a prerequisite for attracting ESG-focused capital.

The company's reporting is mapped against the Global Reporting Index (GRI) and the Sustainable Accounting Standards Board (SASB), plus it uses the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for its climate-related disclosures. This transparency is necessary because investors are increasingly focused on it, especially regarding climate change and ESG-Linked financing. This discipline directly influences their financial targets, such as the 2025 goal of achieving an Equity Free Cash Flow (EFCF) of around $750 million and maintaining year-end leverage below 2.5x.

The need for transparent reporting means environmental risks are now explicitly factored into the cost of capital. You can't separate the two anymore.

Environmental Metric / Target	Value / Commitment (FY2025 Context)	Base Year / Benchmark
Absolute Scope 1 & 2 GHG Reduction Target	50% reduction by FY2030	FY2020 Base Year
2023 Total Emissions (Market Based)	1,563,288 t CO₂e	2023 Benchmark
CPE End-to-End Recovery Rate	83%	End of 2022 (Exceeded 76% 2024 Target)
El Salvador Infrastructure Financing (2025)	Up to $205 million for network enhancement	IDB Invest/Bladex Financing (July 2025)