Brazil’s number two operator, TIM Brazil, has outlined its plan to invest BRL10.7 billion ($5.4 billion) in the market by 2016. Despite a BRL3.4 billion investment in 2012, the firm’s net revenue was at its lowest level for almost two years.
Slowing subscriber additions are a trend across Brazil, with operators reporting Q4 uptake rates that were down by as much as 80% on the same period in 2011. However, this has not deterred TIM’s new incoming CEO Rodrigo Abreu from investing heavily in the market.
The operator’s net income for Q4 2012 was lower than many expected, despite a rise of 16%. Abreu may have his work cut out for him; fellow Brazilian operator Oi sacked its CEO last month after failing to hit projected targets.