TIM's service revenue grew 6.5% in the first quarter, up from 5% in 2025, driven by an acquisition, nonrecurring revenue, and new interconnection agreements that also include higher costs. Core wireless revenue growth slowed to 5%, the slowest pace in more than a year.
TIM claims roughly 23% of the Brazilian wireless market, which should give it plenty of scale to generate strong cash flows.
Bears
TIM’s minimal fixed-line presence prevents it from offering bundled wireless and fixed-line services on a meaningful scale. Limited fixed-line infrastructure will also hurt the firm as it rolls out 5G wireless technology.
TIM, which is 67%-owned by Telecom Italia, is the third-largest wireless carrier in Brazil, with 62 million subscribers, equal to about 23% of the market. The firm owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 8 million locations, including 6.5 million with fiber, equal to 10%-15% of the country. TIM leases capacity on the venture's network to serve retail broadband customers under the UltraFibra brand, but it has agreed to buy out its joint venture partner in 2026 and will take full ownership of these assets. TIM also resells fiber network access from other providers.