Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Thursday, October 29, 2015

For TIM, data revenues will surpass voice next year

Previous estimates considered that in 2017 the sale of data would surpass that of voice, but the increasing use of data, coupled with the stagnation of the use of voice, reduced the forecast to one year. This was said by Rodrigo de Abreu, CEO of TIM in his special lecture at Futurecom 2015.

He added that voice revenues of domestic operators declined 10% in the last quarter, and to this we have to add that from July last there was a reduction in the number of mobile users. But he added that the Minutes of Use (MOU) per capita in the country, measured in minutes, is at 158, one of the highest in the region.

Among the changes experienced by the company in the past year, the official highlighted the transformation of voice to the world of data, market maturity and that the macroeconomic scenario became a challenge, arising from the country’s crisis. On this last point, he pointed out that due to inflation and devaluation of the real, the share of telecommunications in GDP declined from 3% in 2013 to 0.5% today.

Despite this scenario, which he called "perfect storm," Abreu said, "We hope the crisis will dissipate or that we do something to improve the situation?” According to the executive, TIM chose the second option. Thus, this year the operator wants to double the number of installed sites and be the biggest company that has 4G coverage in the country (it has 265 LTE sites, while its two competitors have 180 and 150). "We are not playing, 4G will make a significant change in our positioning of infrastructure," he said.

In a spontaneous conference at the exit of the dissertation, the executive said that they have not received any proposal from Oi, regarding the rumors about a merger. "We have a very important base of users to ensure the continuity and transformation of the company (...) TIM's strategy is not dependent on the consolidation," he said in reference to that they do not necessarily need the merger with Oi to survive.

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