TIM Seizes Full Control of I-Systems, Fueling Brazil's 5G Race

SÃO PAULO & LONDON – May 07, 2026 – In a decisive move that reshapes a segment of Brazil's telecommunications landscape, TIM S.A. has completed its acquisition of the remaining 51% stake in fiber optic network provider I-Systems Soluções de Infraestrutura S.A. The transaction, valued at a final price of R$947 million (Brazilian Reals), makes I-Systems a wholly-owned subsidiary of the Brazilian telecom giant.

The deal marks the conclusion of a process first announced on February 11, 2026, and signifies the complete exit of global infrastructure operator IHS Holding Limited (“IHS Towers”) from the Brazilian fiber sector. Having previously held a 49% share, TIM now assumes full command of a critical infrastructure asset, a strategic consolidation aimed at accelerating its ambitions in the fiercely competitive 5G and broadband markets.

TIM's Strategic Consolidation for 5G Dominance

For TIM S.A., taking full ownership of I-Systems is far more than a simple financial transaction; it represents a foundational pillar of its future strategy. By absorbing I-Systems, TIM gains direct control over an extensive shared optical fiber network that is crucial for underpinning its aggressive 5G rollout and expanding its Fiber-to-the-Home (FTTH) footprint across Brazil.

I-Systems boasts a formidable infrastructure, with its network passing approximately 9.3 million homes and including around 6.4 million FTTH connections. This network spans roughly 22,250 route kilometers as of late 2024, providing a massive and ready-made backbone for TIM's next-generation services. With this acquisition, TIM can eliminate the complexities of a joint-venture structure, enabling more agile decision-making and seamless integration of network planning and deployment.

Alberto Griselli, CEO of TIM Brasil, has previously highlighted that full control is expected to enhance end-to-end connectivity quality, directly improving the customer experience for both mobile and fixed-line services. The move is anticipated to unlock significant operational efficiencies and provide the company with greater flexibility to innovate and respond to market demands. This consolidation reinforces TIM’s market position, equipping it to better compete for future FTTH opportunities and drive its performance toward greater profitability and cash generation.

IHS Towers' Calculated Retreat from Latin America

On the other side of the transaction, IHS Towers' divestment from I-Systems is a deliberate step in a broader strategic realignment. The sale is consistent with the company's publicly stated focus on shareholder value creation by concentrating on lower capital expenditure ventures and businesses with higher-return profiles. Sam Darwish, Chairman and CEO of IHS Towers, has framed the sale as part of a series of strategic initiatives designed to streamline the company's portfolio.

This move signals IHS Towers' complete withdrawal from the Brazilian fiber market, allowing the company to sharpen its focus on its core business: owning, operating, and developing shared telecommunications towers. This divestment is not an isolated event but part of a larger, calculated retreat from the Latin American market for the Africa-focused infrastructure firm.

Notably, this transaction follows IHS Towers' plans to sell its tower operations in both Brazil and Colombia—comprising approximately 7,000 telecom towers—to Macquarie Asset Management for an enterprise value of around US$952 million. By shedding these non-core assets, IHS Towers is actively simplifying its global operations, deleveraging its balance sheet, and aiming to pursue capital returns for its shareholders. The company continues to manage over 37,000 towers in its key emerging markets across Africa and the Middle East.

Shifting Tides in Brazil's Telecom Infrastructure

The IHS-TIM deal is a significant indicator of the evolving dynamics within Brazil's telecommunications infrastructure market. It highlights a growing trend of consolidation, where major operators are moving to secure full control over the assets most critical to their long-term success. As 5G technology demands denser, more robust fiber networks, owning the underlying infrastructure becomes a powerful competitive advantage.

This transaction also reflects a potential shift in strategy for telecom operators who had previously spun off infrastructure assets into separate companies or joint ventures to unlock capital. The move by TIM to buy back full control of I-Systems suggests a recognition that in the 5G era, deep integration and direct command of fiber networks may outweigh the benefits of a shared-asset model. While I-Systems operated as a shared network provider, its role as a vehicle for TIM's expansion was clear, with TIM serving as its anchor tenant.

Regulatory bodies, including Brazil's national telecommunications agency ANATEL, would have scrutinized the transaction to ensure it adheres to market competition guidelines. The approval of the deal underscores a regulatory environment that currently permits such vertical integration as operators fortify their infrastructure bases to support the nation's ongoing digital transformation.

The Financials and Future of I-Systems

The final purchase price of R$947 million for the 51% stake was based on an enterprise value for 100% of I-Systems that was pegged at approximately US$452.6 million at the time of the initial announcement. J.P. Morgan acted as the financial advisor to IHS Towers throughout the sale process.

With the transaction complete, I-Systems transitions from a joint venture to a wholly-owned subsidiary, set to be deeply integrated into TIM's corporate and operational structure. This new chapter is expected to simplify governance and accelerate the alignment of I-Systems' network development with TIM's strategic priorities. The focus will be on leveraging the fiber network to its fullest potential to deliver superior 5G and broadband services.

By bringing I-Systems fully into the fold, TIM not only enhances its current capabilities but also solidifies its foundation for future growth. The integration is expected to reinforce TIM's position for upcoming FTTH opportunities and contribute significantly to its long-term goals of profitability and cash generation in the dynamic Brazilian market.