TIM's Competitive Discipline Should Drive Stable Cash Flow, With Subpar Growth

While we expect TIM to generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and tiny broadband customer base leave it at a disadvantage to both its larger competitors. The move to acquire I-Systems provides a modest fixed-line network footprint and could portend additional deals in a brutally competitive market, but thus far, management seems content to play it safe.