Brazilian telecoms operator TIM SA is negotiating to regain control of its main fibre network business, a move that would reverse part of the asset-light strategy that has reshaped the sector. The company is in talks to repurchase a majority stake it previously sold, signalling that the economics of high-speed broadband infrastructure in Brazil may be shifting again.
People familiar with the matter say TIM is working on a deal that would restore its commanding position in the fibre unit while keeping financial risk contained. If completed, the transaction would test whether owning critical digital infrastructure now looks more attractive than renting it, after years in which operators rushed to monetise these assets.
What TIM is trying to buy back
According to people briefed on the negotiations, TIM SA is in discussions to reacquire a controlling interest in a Brazilian fibre-network business it carved out and sold to investors. The company is seeking to buy back a 51% stake, which would restore majority control over a network that underpins its fixed broadband and mobile backhaul services across key cities. The talks highlight how central fibre has become to TIM’s long term strategy in the Brazilian market, where high-capacity connections are now as critical as spectrum licences.
People close to the discussions say the negotiations are advanced but not yet final, with the parties still working through valuation and governance details. The potential transaction has drawn attention in financial centres such as MILAN, where investors track TIM’s Brazilian operations as a key growth engine. For the Brazilian unit, regaining operational control over the fibre platform would give management more freedom to align network expansion, pricing and service bundling with its broader commercial plans.
The price tag and deal structure
People familiar with the talks say the parties are working around a valuation of about $170 million for the stake TIM wants to repurchase, a figure that reflects both the growth of fibre demand and the pressure on wholesale-only business models. For TIM Brasil, that price would represent a calculated bet that tighter integration of fibre with its mobile and fixed operations can unlock more value than a purely financial investor might achieve. The company is effectively weighing the cost of re-entry against the strategic benefits of owning the asset that carries its fastest-growing traffic.
People briefed on the negotiations say the aim is to close the deal quickly, with internal expectations that an agreement could be signed as early as the second week of Feb if final hurdles are cleared. One account of the talks notes that the transaction could be wrapped up early as February, although people involved caution that timing could still slip if regulatory or financing questions arise. Structurally, the deal would leave a minority investor in place, preserving some of the capital-light benefits of the original carve-out while restoring TIM’s ability to steer the asset.
Why TIM is reversing part of the asset-light playbook
Over roughly the past decade, Global telecom carriers have systematically sold off towers and fibre networks to specialist infrastructure funds, using the proceeds to cut debt and invest in spectrum or digital services. TIM followed that pattern in Brazil, spinning out its fibre grid into a separate vehicle and bringing in outside capital to shoulder the heavy investment burden. The logic was clear at the time: wholesale-only fibre platforms could chase multiple tenants, while operators freed up balance sheets and focused on retail competition.
The potential buyback suggests that, at least for TIM in the Brazilian market, the pendulum is swinging back toward ownership of critical infrastructure. Executives and advisers see advantages in having direct control over network upgrades, service quality and the pace of expansion into new cities, rather than negotiating every move with a separate landlord. The fact that TIM is now prepared to pay to regain a 51% stake in the fibre unit it once sold underlines how central fibre has become to converged offers that bundle mobile, fixed broadband and digital services.
Implications for Brazil’s fibre market
If TIM succeeds in regaining control, the move could reshape competitive dynamics in Brazil’s high speed broadband segment. A TIM led fibre platform with majority ownership could prioritise coverage in neighbourhoods where the operator sees the strongest demand for bundled mobile and fixed services, potentially putting pressure on smaller internet service providers that rely on wholesale access. For consumers, tighter integration between TIM’s retail arm and its fibre backbone could translate into faster rollouts of gigabit connections and more aggressive promotional offers, especially in large urban centres where the company already has a strong mobile base.
The deal would also send a signal to other Brazilian operators that the balance between asset-light models and infrastructure ownership is shifting. If TIM can show that bringing the fibre unit back under its wing improves profitability and customer retention, rivals may reconsider their own structures or push for deeper partnerships with network owners. The fact that the negotiations are being closely watched in Global investor circles underscores how Brazil’s fibre market has become a test case for emerging economies where demand is booming but capital remains finite.
Investor scrutiny and the road ahead
For shareholders, the key question is whether TIM can justify paying roughly 58 times the kind of per home metrics that infrastructure funds often use, once the implied valuation of about $170 million is broken down across the network’s footprint. Analysts will scrutinise whether the transaction boosts cash flow through lower wholesale fees, better utilisation of existing fibre, and stronger cross selling of mobile and fixed services. The involvement of By Elvira Pollina in reporting from MILAN has already drawn attention from European investors who see TIM’s Brazilian arm as a bellwether for telecom infrastructure strategy.
Regulators will also be watching closely, particularly given the broader policy debate over neutral networks and open access. Some policymakers favour independent fibre platforms that serve all operators on equal terms, while others accept that vertically integrated models can accelerate investment in underserved areas. In Brazil, any decision on the TIM deal will need to balance competition concerns with the country’s ambition to extend high quality broadband beyond major cities. As the talks progress through Feb, I expect scrutiny from both market regulators and competition authorities to intensify, with each side weighing how TIM’s move fits into the long term shape of the Brazilian digital economy and the research methods, including any internal Poll work, that underpin the company’s strategic shift.
