Business Strategy and Outlook| Michael Hodel, CFA |
TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.