Amazon fiber optical project among TIM's most strategic, says president

- Thursday, August 4, 2011

Amazon fiber optical project among TIM's most strategic, says president

Brazilian mobile operator TIM's (NYSE: TSU) signing of a contract with LT Amazonas consortium in July to deploy fiber optic cables in the Amazon region is among the company's most strategic projects in recent time, said TIM president Luca Luciani on a conference call with investors.

"TIM will be the first [operator] to take mobile broadband internet to the Amazon area," Luciani said. The project shall benefit 27 municipalities in Amazonas, Pará and Amapá states.

Besides the northern region project, Luciani also placed the acquisition of Atimus, a telecommunications branch of power holding AES Brasil, as one of the firm's most important moves. The acquisition - a 1.6bn-real (currently US$1.0bn) deal - was announced by TIM on July 8.

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According to TIM Brasil's marketing director, Rogério Takayanaga, as a result of that purchase, the carrier will have "the best mobile broadband internet in Brazil" due to the quality of Atimus' fiber network.

"We already have the biggest fiber optics network in Latin America, located in southern Brazil," Luciani added.

According to TIM's results, the mobile operator had Q2 net profits of 350mn reais, 178% higher than year-ago earnings of 126mn reais.

TIM's client base at end-Q2 was at 55.5mn, up 25% when compared to a year ago, and local press reported that the company foresees the client base hitting 60mn in Q4.

TIM Brasil is a unit of Italy's Telecom Italia (NYSE: TI).