After acquiring the assets of struggling rival Oi Group, the Brazilian arm of Italian telecom giant Gruppo TIM, is preparing to get rid of duplicate towers. According to DevelopingTelecoms, TIM Brasil plans to sell or decommission roughly 4,300 of the 7,200 cell towers it just purchased from Oi.
Leonardo Capdeville, Chief Technology and Innovation Officer at TIM Brasil, has indicated that the towers that will remain in service are ones that cover areas not previously covered by his company. The release of the extra towers was also one of the stipulations of antitrust watchdog, CADE. The regulatory agency approved the acquisition in 2020. TIM Brasil has stated that the majority of the spare towers will be offloaded within the next two years, with the remainder gone by 2030.
On the financial front, TIM Brasil has stated that removing the towers from their portfolio will register $884 million of leasing contracts as “additional IFRS16 financial debt.”
However, the overall result of the acquisition should increase TIM Brasil’s market share from 20 to 27 percent. The company has predicted a profit of $360 million for the 2022 fiscal year.
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