Telecom Italia considering investing USD950m in Brazilian unit

8 Oct 2014

Telecom Italia (TI) is considering investing an extra EUR750 million (USD947.4 million) in its Brazilian unit TIM Participacoes (TIM Brasil) over the next three years, Reuters reports, citing a person with knowledge of the plan. The investment programme – dubbed ‘Turbo’ by the telco – will be put to the TIM Brasil board for approval later this month.

As previously reported by TeleGeography’s CommsUpdate, last month TI lost out to Spain’s Telefonica in a multi-billion dollar battle to buy Brazilian broadband operator GVT from French group Vivendi, leaving TIM Brasil in a considerably weaker position than its rivals in terms of fixed line infrastructure.

Interestingly, TI’s ‘Plan B’ has seen it hire Banco Bradesco’s investment banking unit to analyse a potential bid for rival Oi SA, which boasts considerable fixed line assets, but remains slightly adrift of the three leading mobile operators: Vivo, TIM Brasil and Claro.

Brazil, Telecom Italia (TIM), TIM Brasil