Telecom Italia is planning to review its growth strategy in Brazil that generates almost 30 percent of the telecom network operator’s revenue.
Telecom Italia Chief Executive Officer Marco Patuano said the proposed review is because of the economic recession in Brazil.
The company will have a board meeting to discuss its plans on 25 September.
“For our Brazil unit, we are focused at the moment on organic investments but we need to review the strategic plan since the situation in Brazil worsened a lot,” Patuano told reporters in Rome on Monday.
Telecom Italia owns about two-thirds of Rio De Janeiro-based Tim Participacoes, the second-largest Brazilian wireless carrier, with a market value of about $5.1 billion, Reuters reported.
Telecom Italia, which also plans to review its strategy for wireless tower unit Inwit, hasn’t received an offer for the division, the CEO said. Spain’s Cellnex Telecom is considering a bid and one scenario discussed was a purchase of a 30 percent in Inwit.
Telecom Italia is planning to invest over 14 billion reias ($3.6 billion) in the next three years in Brazil to extend 4G LTE coverage to more than 15,000 sites, and 3G coverage to over 14,000 sites by 2017, Telecom Italia said on February 20
“Most of our investments in Brazil will continue to be in U.S. dollars,” Patuano said on Monday.
