TIM Participações S.A. ("TIM Participações" or the "Company"), is a publicly-held company controlled by TIM Brasil Serviços e Participações S.A., a Telecom Italia Group's company, who holds interests of 77.14% of its voting capital and 66.27% of its total capital.
The Company's main operations comprise the control of companies exploring telecommunications services, especially personal mobile and fixed telephony in its authorization areas.
The Company owns the entire capital stock of TIM Celular S.A. ("TIM Celular") and of Intelig Telecomunicações Ltda. ("Intelig"). TIM Celular and Intelig provide local, national long-distance and international long-distance Fixed Switched Telephone Services (STFC) in all of the Brazilian states. Additionally, TIM Celular also provides Multimedia Communication Services (SCM) and Personal Mobile Services in all of the Brazilian states.
The services provided by the subsidiaries are regulated by ANATEL – Brazilian Telecommunications Agency – in charge of regulating all Brazilian telecommunications. The exploration of the Personal Mobile Service (SMP) and the Commuted Fixed Telephone Service (STFC) is for an indefinite period.
The authorization for use of radiofrequency granted to TIM Celular mature as follows:
| Terms of authorization |
Matured Date |
Radiofrequencies 800 MHz, 900 MHz
and
1,800 MHz |
Radiofrequencies 3G |
| 1. Amapá, Roraima, Pará, Amazonas, Maranhão, Rio de Janeiro and Espírito Santo |
March, 2016 |
April, 2023 |
| 2. Acre, Rondônia, Mato Grosso, Mato Grosso do Sul, Tocantins, Distrito Federal, Goiás, Rio Grande do Sul (except for Pelotas and respective regions) and Londrina and Tamarana in Paraná municipalities |
March, 2016 |
April, 2023 |
| 3. São Paulo |
March, 2016 |
April, 2023 |
| 4. Paraná (except for Londrina and Tamarana in Paraná municipalities) |
September, 2022 |
April, 2023 |
| 5. Santa Catarina |
September, 2023 |
April, 2023 |
| 6. Pelotas and the respective region in the state of Rio Grande do Sul |
April, 2024 |
April, 2023 |
| 7. Pernambuco |
May, 2024 |
April, 2023 |
| 8. Ceará |
November, 2023 |
April, 2023 |
| 9. Paraíba |
December, 2023 |
April, 2023 |
| 10. Rio Grande do Norte |
December, 2023 |
April, 2023 |
| 11. Alagoas |
December, 2023 |
April, 2023 |
| 12. Piauí |
March, 2024 |
April, 2023 |
| 13. Minas Gerais (except for the "Triângulo Mineiro" municipalities for radiofrequencies 3G) |
April, 2013 |
April, 2023 |
| 14. Bahia and Sergipe |
August, 2012 |
April, 2023 |
Renewal of authorizations
The radiofrequency licensing authorizations for the 800 MHz, 900 MHz and 1800 MHz bands referring to the SMP service provision, begin to expire in September 2007 (under the Term of Authorization for the State of Paraná except for Londrina and Tamarana municipalities) and are renewable for one more 15-year period, requiring payment, at every two-year period, of the equivalent to 2% (two percent) of the prior year's revenue net of taxes, by way of investment under the Basic and Alternative Service Plans. The first payment, in the amount of R$9,723, was paid at May 04, 2009.
The renewal of five (5) radiofrequency licensing authorizations which matured in 2008 were formalized through the following acts: Act 7.383 – state of Alagoas; Act 7.385 – state of Ceará; Act 7.386 – state of Paraíba; and Act 7.390 – state of Rio Grande do Norte. Also, the renewal of three (3) radiofrequency licensing authorizations maturing in 2009 were formalized through the following acts: Act 7.388 – state of Pernambuco; and Act 7.389 – state of Piauí, all published in the DOU (Official Gazette) of 11/28/2008. The Act 5.520 referring to renewal of authorization in the State of Santa Catarina was published in the Official Gazette of 09/22/2008. The renewal of radiofrequency licensing authorization referring the SMP service provision for Pelotas, Morro Redondo, Capão do Leão and Turuçu, all in Rio Grande do Sul municipalities, were formalized by the Act 1.848 published in the DOU of 04/13/2009.
While the economic situation has remained stable in Brazil over the past years, an increase in inflation and foreign exchange rates may impact the Company's operations. The change in the rate of the Brazilian real (R$) over the U.S. dollar impacts the Company's individual and consolidated financial statements. The exchange rate of the Brazilian real to the U.S. dollar was R$2.3370:US$1.00 and R$1.7412: US$1.00 at December 31, 2008 and 2009, respectively. At December 31, 2008 and 2009, the U.S. dollar-denominated loans represented 8.81% and 23.34% of the Company's total consolidated debt.