Tim Participacoes SA (TCSL4) topped billionaire Carlos Slim’s America Movil SAB in Brazil last month to become the second-largest operator in Latin America’s biggest wireless market, luring more users as its rivals reorganize.
Tim, the Brazilian unit of Telecom Italia SpA (TIT), had 25.8 percent of mobile-phone subscriptions in July, compared with 25.5 percent for America Movil’s Claro unit, according to data released yesterday by Brazil’s telecommunications agency, known as Anatel. Telecomunicacoes de Sao Paulo SA (TLPP3), a unit of Spain’s Telefonica SA (TEF) known as Vivo, led the market with a 29.5 percent share.
Tim, based in Rio de Janeiro, is using promotions such as prepaid calls of unlimited duration to fixed lines to persuade more customers to switch off their home lines in favor of wireless phones. Tim customers averaged 127 minutes of use a month last quarter, up 15 percent from the same period last year.
“The primary thing has been offering low-cost long distance,” said Walter Piecyk, an analyst at BTIG LLC in New York. “The Infinity Web daily payment rates for Web access on phones has also been successful.” He advises buying the shares.
Tim gained 30 centavos, or 3.4 percent, to 9.20 reais yesterday in Sao Paulo trading. America Movil rose 20 centavos, or 1.4 percent, to 14.86 pesos yesterday in Mexico City, where the company is based.
America Movil and Telefonica are trailing Tim’s expansion after both made transactions last year to combine fixed-line networks with their wireless operations.
At the end of July, Tim’s subscriber base had increased 26 percent from a year earlier, compared with 18 percent growth for America Movil and 15 percent for Vivo.
Brazil’s wireless market grew 17.8 percent in July from a year earlier to 220.4 million subscribers, according to Anatel.
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