TIMS3: quote, dividends and indicators for TIM

TIM S.A. is a telecommunications operator that emerged in 1998 as a result of the reorganization of the Telebrás system, in the context of the privatization of the telephone sector in Brazil. Originally incorporated as Tele Celular Sul Participações S.A., the company was renamed TIM Participações S.A. in 2004 and consolidated its national presence starting in 2002, becoming the first mobile operator to operate in all Brazilian states under a single brand. The restructuring of the former state monopoly involved the creation of new regional holding companies and the division of the territory into different mobile service areas, in which companies of the TIM group took over cellular phone operations. Since then, the company has expanded its customer base and its infrastructure, positioning itself as one of the major operators in the mobile sector in the country. Its common shares are traded on B3 under the ticker TIMS3, placing it among the publicly traded telecommunications companies in the Brazilian market.

The company is currently controlled by TIM Brasil Serviços e Participações S.A., which in turn is a wholly owned subsidiary of Telecom Italia Finance S.A., controlled by Telecom Italia S.p.A. This connection places TIM S.A. within the Telecom Italia Group, a European telecommunications conglomerate operating in Europe, the Mediterranean Basin and South America. The presence of the Italian group in Brazil dates back to 1998 and was strengthened by the spectrum auctions held by Anatel in 2001 for Bands D and E, in which TIM obtained licenses covering the entire national territory, consolidating the provision of mobile services on a national scale under the same brand. The corporate structure, with a local holding company concentrating operations in the country and indirect control by a multinational in the sector, influences access to technologies, management practices, synergies in equipment and network solution purchases, and allows for a certain strategic convergence with global telecommunications trends.

TIM S.A.’s business model is based mainly on offering mobile voice and data services, broadband internet connectivity and a range of value-added services. The company operates with a full portfolio of plans for individuals, covering prepaid, controlled and postpaid profiles, and also offers corporate solutions for small, medium and large companies. In fixed services, the company operates under the TIM UltraFibra brand (formerly TIM Live), focused on fixed ultra broadband, aimed at providing high-speed internet for households and businesses. TIM’s net revenue comes mostly from services, which accounted for around 97% to 98% of total net revenue between 2023 and 2025, while the sale of products, such as cell phones and other electronic devices, represents a smaller share, between 2% and 3% in the period mentioned.

Within its operational structure, TIM does not break down its business into multiple reportable segments, treating the operation as a single segment. The main revenue lines for mobile and fixed services include monthly subscription fees for postpaid plans, network usage fees for local calls (VC1), national and international roaming revenues, interconnection fees for use of the network by other operators, domestic and international long-distance calls, value-added services and co-billing services. Additionally, the company records revenues associated with Internet of Things (IoT) solutions, which include project installation fees, monthly connectivity subscriptions and access to specific platforms. In the products area, the company sells a diversified portfolio of cell phones from various manufacturers, in addition to expanding the offering of consumer electronics in its own stores, such as video game consoles, smart TVs, audio devices and other equipment, with a focus on the growing penetration of 5G-compatible smartphones and connected devices.

In the Brazilian telecommunications market, TIM S.A. operates broadly in mobile services and fixed broadband, in a competitive environment with other major operators. The company leverages the combination of connectivity and digital content, offering plans that bundle subscriptions to video, music, digital reading, gaming and other value-added digital services. Its diverse partnerships encompass content and digital security, education, health, retail and energy, integrating platforms such as video-on-demand services, educational apps and health and consumer benefits. This strategy seeks to increase daily usage of connected devices and reinforce the company’s position as a content hub. In terms of customer base, revenue is well diversified, with no significant concentration, as the company does not have individual customers accounting for more than 10% of total net revenue.

In network infrastructure and technology, TIM invests in expanding and modernizing its 4G and 5G networks, as well as in the quality of its fixed broadband. At the end of 2025, approximately 97.6% of data traffic from its customer base was carried over 4G and 5G networks, reflecting the focus on cutting-edge technologies. The company also directs efforts to the digital transformation of processes, from line sales and activation to after-sales and self-service through digital channels, seeking greater operational efficiency and a smoother user experience. The management of information technology suppliers is organized through governance systems that include project review dashboards, contractual audits and the use of best practices in selection and negotiation, which tends to consolidate suppliers on specific platforms, achieve economies of scale and support long-term IT and network projects.

TIM S.A.’s operations are strongly influenced by the regulation of the Brazilian telecommunications sector, overseen by the National Telecommunications Agency (Anatel), an independent agency responsible for issuing rules, supervising services and managing the use of radio frequencies. The company’s operations involve licenses and authorizations to provide Personal Mobile Service (SMP), Switched Fixed Telephone Service (STFC) and Multimedia Communication Service (SCM), under a private authorization regime. The company is subject to a broad set of resolutions and regulatory acts, including rules on the use of radio frequency spectrum, spectrum caps per operator, quality of services (RQUAL), consumer rights, numbering, oversight and competition rules. The General Competition Goals Plan (PGMC) and other regulations establish specific conditions for providers deemed to have Significant Market Power in certain markets, such as call termination on mobile networks and national roaming, affecting reference prices, infrastructure sharing and competition obligations.

The sector’s economic regulation also governs interconnection tariffs (VU-M), termination rates in mobile and fixed networks, roaming policy and conditions for the use of carrier selection codes (CSP) for long distance. Over the years, Anatel has defined trajectories for reduction and subsequent adjustment of interconnection tariffs, based on cost models. Recent regulations also address the elimination of certain geographic restrictions on roaming, the prohibition of subscription charges for M2M and IoT connections until 2027, and the possibility of successive extensions of radio frequency use authorizations, subject to compliance with obligations, assessment of public interest and competitive regularity. In parallel, the review of the General Telecommunications Law and its regulations introduced greater flexibility in adapting concessions to authorizations and in spectrum trading between operators, creating an environment in which TIM’s strategic decisions regarding spectrum, network investments and coverage commitments are directly linked to regulatory developments.

In the field of innovation, TIM has maintained an Open Innovation Program since 2016, aimed at collaboration with startups, technology partners, academic institutions and innovation hubs. The program seeks to identify, test and evaluate solutions that contribute to network evolution, new digital services, B2B offerings and increased operational efficiency. Projects in IoT, 5G, precision agriculture, smart lighting, herd management, autonomous operations, video surveillance with analytics, and applications in logistics and Industry 4.0 exemplify technology development fronts that can translate into new revenue sources and portfolio diversification over time. Within this context, TIM S.A., through its TIMS3 shares traded on B3, represents an asset that is simultaneously exposed to the competitive dynamics of the Brazilian telecommunications market, the sector’s regulatory agenda and the trajectory of investments in network infrastructure and digital services.