TIM Brasil to deploy LTE in 450MHz band; shareholder files suit against Telecom Italia

11 Oct 2012

Brazilian mobile operator TIM Participacoes (TIM Brasil), a wholly owned subsidiary of TIM Brasil Servicos e Participacoes, which is itself a Telecom Italia (TI) group company, has revealed plans to roll out Long Term Evolution (LTE) equipment in the 450MHz band as it looks to boost coverage to more rural parts of the country. However, the news has been darkened by a separate announcement that one of its minority shareholders, JVCO Participacoes, an investment vehicle for Brazilian investor Nelson Tanure, has filed a lawsuit against TI, seeking compensation for BRL10 billion (USD5 billion) in ‘lost market value’. Reuters writes that specifically, JVCO Participacoes has accused the Italian parent of exercising ‘its controlling power abusively, causing losses to TIM and its shareholders.’ The minority investor’s press statement confirmed that the lawsuit has been filed in Rio de Janeiro, but does not contain any concrete amount in terms of its demand for restitution.

Brazil, Telecom Italia (TIM), TIM Participacoes (TIM Brasil)