TIM's Broadband Weakness Remains a Challenge for Wireless 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, but the broadband market is highly fragmented and brutally competitive. We don't believe TIM has any obvious paths to improve its competitive position.