Telecom network operator TIM Brazil said it will invest $3.6 billion or nearly 14 billion reais towards Capex (capital spending) during 2015-2017, despite a 30 percent dip in Brazil’s currency this year.
TIM Brazil Chief Executive Rodrigo Abreu said that the Brazilian telecom company will stick to its investment plan. TIM has worked to renegotiate better terms on imported equipment.
TIM Brazil investment focus areas
# Secure leadership role in the market transition to data
# Fast coverage expansion
# Develop robust 4G infrastructure
But the telecom company will trim the extent of investments before it exceeds its target of $3.6 billion in capital spending from 2015 to 2017, Abreu said.
TIM Brazil in Q2 2015 achieved 3.9 times growth in 4G clients to 3.8 million users. Penetration of smartphones over total base reached 60 percent, driven by smartphone sales mix of 93 percent.
TIM Brazil has made an investment of R$ 1.2 billion in Q2 2015 — expanding its 3G, 4G and fiber transmission infrastructure. Its Mobile Broadband Project reached over 157 cities, or 45 percent of the country’s urban population.
4G deployments of TIM Brazil increased over 25 percent in the number of 4G sites, maintaining TIM as the operator with the largest number of 4G sites in the state capitals in Brazil.
TIM Brazil said its data and innovative services grew 44 percent in revenues — sustained by increase in data traffic of over 30 percent and in data ARPU of close to 42 percent. Smartphone penetration over the user base reached 59 percent.
4G users, which consume over three times as much data as 3G users, reached a customer base of almost 4 million users. Mobile VAS revenues of TIM Brazil has reached a penetration of 35 percent of overall service revenues, up from 27 percent the year prior.