Milicom Expands Subsea Network in Central America

Why It Matters

The added capacity positions Millicom to capture rising bandwidth demand and strengthens its competitive foothold in Central America, while accelerating regional digital inclusion and economic development.

Key Takeaways

• Millicom joins TAM-1, 7,000 km subsea cable
• Each fibre pair delivers at least 18 Tbps capacity
• Expansion adds route diversity and redundancy across Central America
• Supports digital services for education, healthcare, and commerce
• Complements recent $1.2 B acquisition of Telefónica Chile

Pulse Analysis

The TAM‑1 system, a 7,000‑kilometre submarine cable spanning the United States, the Eastern Caribbean, Central America and Colombia, represents one of the most robust undersea infrastructures in the Western Hemisphere. With each fibre pair capable of 18 terabits per second, the network offers carrier‑neutral, open‑access connectivity that can be scaled to meet future traffic spikes. By integrating this platform, Millicom gains immediate access to a high‑capacity backbone that reduces latency and improves resilience for its mobile and broadband services across the region.

Millicom’s strategic move aligns with its broader ambition to become the leading digital services provider in Latin America. The additional route diversity and redundancy mitigate risks associated with single‑point failures, a critical factor for enterprises and consumers relying on uninterrupted cloud, video and IoT applications. Coupled with the recent $1.2 billion purchase of Telefónica Chile, the subsea expansion strengthens Millicom’s end‑to‑end value chain, enabling bundled offerings that combine mobile, fixed‑line and digital platforms, and positioning the company ahead of regional rivals still dependent on legacy infrastructure.

Beyond Millicom, the TAM‑1 upgrade signals a wave of investment in Latin America’s telecom landscape, where bandwidth demand is projected to double by 2030. Governments and private investors are prioritising fibre‑optic connectivity to drive digital inclusion, improve education and healthcare delivery, and attract foreign direct investment. As more carriers adopt open‑access models, the market is likely to see heightened competition, lower prices and accelerated rollout of next‑generation services, fostering a more connected and innovative regional economy.