TIM S.A. (TIMB): Business Model Canvas [Dec-2025 Updated]

You're digging into how TIM S.A. is navigating Brazil's competitive telecom space, and honestly, their late-2025 strategy is all about the next generation. Their Business Model Canvas shows a massive pivot: pouring R$4-5 billion annually into 5G infrastructure while pushing their high-value postpaid base-which already drives nearly 70% of mobile revenue-toward digital services. With total revenue near $4.67 Billion USD as of late 2025, understanding how they balance this heavy network investment with their growing B2B IoT push is key to seeing where the real value lies. Dive in below for the full nine-block breakdown of their current operational blueprint.

TIM S.A. (TIMB) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships TIM S.A. (TIMB) relies on to deliver its value proposition as of late 2025. These alliances are key to network expansion, B2B growth, and service monetization.

The partnership with Vale S.A. is anchoring the TIM Smart Mining B2B solution, which leverages 5G, IoT, and artificial intelligence for mining operations. This B2B evolution supports TIM S.A. (TIMB)'s overall financial health; for the first 9 months of 2025, service revenues increased by 5.2% year-over-year, and EBITDA reached a margin of 50.3%.

For mobile app monetization, the collaboration with Digital Turbine is integrating personalized app recommendations and seamless access on Android devices sold by TIM S.A. (TIMB). This integration is planned for hundreds of thousands of Android devices annually. Digital Turbine's related AGP business delivered $44.7 million in revenues in Q2 of fiscal 2026, showing the potential scale of this channel.

Network infrastructure deployment is heavily reliant on vendors like Huawei and Nokia. Nokia was selected to expand TIM S.A. (TIMB)'s 5G radio access network (RAN) coverage across 15 Brazilian states starting January 2025, supplying equipment from its AirScale portfolio. As of Q2 2025, TIM S.A. (TIMB)'s 5G coverage reached 70% of the urban population. The global 5G Infrastructure Market size was valued at USD 16 billion in 2025.

In the financial and digital security space, TIM S.A. (TIMB) is actively developing partnerships. The company announced a settlement with C6 Bank to monetize its stake, signaling new avenues in financial services. Furthermore, TIM S.A. (TIMB) approved the acquisition of V8 Consulting S.A. (V8.Tech), a firm focused on digital solutions and AI, for an upfront price of BRL 140,000,000.00, with potential earn-outs up to an additional BRL 140,000,000.00 over six years.

Regarding infrastructure leasing, TIM S.A. (TIMB) is focused on renegotiating tower and lease contracts, aiming for reduced prices and exploring building as an option. Lease payments were noted to have grown by a high single digit year-over-year as of Q1 2025. This focus on efficiency directly impacts cash flow metrics; Operating cash flow (EBITDA-AL minus Capex) reached R$2,719 million in the first half of 2025.

Here's a quick look at some relevant financial context for TIM S.A. (TIMB) in 2025:

The operational scope of these partnerships is reflected in the following key operational data points:

• 5G coverage reached 70% of the urban population as of Q2 2025.
• Nokia expansion covers 15 Brazilian states starting January 2025.
• Digital Turbine integration targets hundreds of thousands of Android devices annually.
• Postpaid revenue represented 70% of mobile service revenues in Q2 2025.
• The acquisition of V8.Tech includes a potential earn-out of up to BRL 140,000,000.00 over six years.

Finance: draft 13-week cash view by Friday.

TIM S.A. (TIMB) - Canvas Business Model: Key Activities

You're looking at the core operational focus for TIM S.A. (TIMB) as of late 2025, which is heavily weighted toward network superiority and customer value migration. Here's the breakdown of what they're actively doing, grounded in their latest reported numbers.

5G network deployment and modernization across Brazil

TIM S.A. (TIMB) is executing an aggressive build-out, claiming a national milestone. As of October 2025, TIM S.A. (TIMB) became the first operator in Brazil to reach 1,000 cities with 5G coverage, deploying at least one antenna in each location. This network expansion now covers approximately 75% of the urban population, which equates to more than 120 million people. By May 2025, the company had deployed 13,189 total 5G cell sites. The focus on modernization is clear in specific regions; for instance, the investment plan for São Paulo state alone is R$1 billion (approximately US$190 million) for 2025, which is almost a quarter of the total intended nationwide investment for the year. In São Paulo, the company is accelerating network modernization, having already modernized over 1,500 4G and 5G sites. Traffic on the 5G network in São Paulo increased from 28% in January 2025 to 34% by October 2025.

Managing a mobile customer base of over 50 million subscribers

The scale of the mobile operation is substantial. At June 30, 2025, TIM S.A. (TIMB) reported a total mobile line count of 62.2 million. This base is shifting its composition toward higher-value contracts. Post-paid customers made up 50.7% of the total customer base by the end of the first half of 2025. The company maintains a leadership position in pricing power, boasting the highest mobile Average Revenue Per User (ARPU) in the industry. For the third quarter of 2025, the mobile ARPU reached a record R$33.1.

Executing the prepaid-to-postpaid migration strategy

This migration is a primary driver of revenue stability. In the second quarter of 2025, TIM S.A. (TIMB) added more than 450,000 new postpaid customers. This resulted in postpaid revenue growing by 12.2% year-over-year in the first half of 2025. In the third quarter of 2025, postpaid revenue specifically jumped 10.9%. Postpaid services accounted for 70% of mobile service revenues as of Q2 2025. Conversely, the prepaid segment is shrinking, with prepaid revenue declining by 8.9% in Q3 2025.

Developing and selling new B2B IoT and cloud solutions

The enterprise segment is a key growth vector, outperforming the reference market. TIM Enterprise reported total revenues of 1.6 billion euros for the first half of 2025, marking a 4.7% year-over-year increase. Within this, Cloud services are accelerating, showing 25% year-on-year growth in the first half of 2025. Service revenues related to Information and Communications Technology (ICT) rose to 65% of TIM Enterprise's total revenue in the same period. In the Internet of Things (IoT) space, the company has 109 companies in its B2B IoT portfolio. Since the first quarter of 2024, IoT solutions for the logistics industry alone have generated R$406 million in contracted revenue.

Maintaining fiber optic and ultra-broadband fixed infrastructure

While the mobile segment drives growth, the fixed infrastructure business is managed for efficiency amid competition. In the third quarter of 2025, the fixed service revenue for TIM Brasil was R$331 million, representing a 0.7% year-on-year fall. Specifically, TIM Ultrafibra revenue dropped 2.4% to R$228 million in Q3 2025. The ARPU for fixed services in that quarter was R$94.7. Still, operational improvements are yielding results in customer acquisition, with positive net additions recorded for eight consecutive months, adding over 23,000 new customers in Q3 2025 alone. The Broadband ARPU for the first half of 2025 was 94.4 reais.

TIM S.A. (TIMB) - Canvas Business Model: Key Resources

You're looking at the core assets TIM S.A. (TIMB) relies on to run the business as of late 2025. These are the tangible and intangible things they own or control that make their value proposition possible.

Extensive 5G and 4G mobile network infrastructure

The physical network remains central. As of the second quarter of 2025, TIM S.A.'s 5G coverage reached 70% of the urban population. By October 2025, the company hit a milestone, becoming the first operator in Brazil to connect 1,000 cities with its 5G network. In state capitals specifically, 5G traffic accounted for 30% of data flows in Q2 2025. The infrastructure modernization in São Paulo involved upgrading over 3,000 sites, which delivered a 40% increase in network capacity while simultaneously cutting energy consumption by 15%. Furthermore, in Minas Gerais, the plan was to expand 5G coverage from 57 cities in May 2025 to 131 cities by December 2025.

Acquired cloud/digital integration capabilities via V8.Tech

The move into B2B services is underpinned by the recent acquisition of V8.Tech. Here are the key numbers related to that capability injection:

This acquisition is part of the 2025-2027 strategic plan focusing on corporate diversification.

Licensed spectrum assets, critical for 5G leadership

The network reach is a direct result of spectrum assets. The 5G network now covers 70% of the urban population. The company has connected 1,000 cities with 5G as of October 2025.

Large, established customer base, generating nearly 70% of mobile revenue from postpaid

Monetization is heavily weighted toward higher-value customers. In Q1 2025, postpaid lines made up 50% of the total base but generated almost 70% of mobile revenues. By Q2 2025, postpaid revenue growth was 12.2% year-over-year, accounting for 70% of mobile service revenues. The overall mobile ARPU (Average Revenue Per User) was reported near R$33 per month in Q2 2025. As of Q3 2025, the customer base, excluding M2M access, stood at 25.4 million lines.

Human capital focused on network engineering and digital services

The total workforce supports these operations. TIM S.A. has 9,127 employees in total. The acquired V8.Tech brings specialized digital talent, with approximately 380 professionals focused on digital and managed services.

TIM S.A. (TIMB) - Canvas Business Model: Value Propositions

You're looking at the core value TIM S.A. (TIMB) is delivering to its customers as of late 2025, which is heavily weighted toward network superiority and premium service tiers.

The primary value proposition centers on network leadership, especially in next-generation mobile technology. TIM S.A. (TIMB) is the first operator in Brazil to reach the milestone of 1,000 cities with 5G coverage, as announced in October 2025. This national footprint now covers 100% of the neighborhoods in all 27 state capitals, reaching approximately 75% of the urban population, which equates to over 120 million people. The adoption rate reflects this availability, with 5G devices growing fivefold since 2022, now representing 28% of total devices.

For the enterprise segment, the value is in high-performance, low-latency connectivity tailored for advanced industrial applications. TIM S.A. (TIMB) is focusing on verticals like agribusiness, utilities, industry 4.0, and logistics for its Internet of Things (IoT) solutions. The company reported having 109 companies in its B2B IoT portfolio as of Q2 2025, with contracted revenues for B2B projects since Q1 2024 reaching R$406 million. Furthermore, the late 2025 acquisition of V8.Tech, which focuses on digital transformation and cloud solutions, brought in net revenue of approximately R$235 million over the 12 months ending September 2025.

The fixed-line offering, TIM Ultrafibra, provides high-speed ultra-broadband access, though this segment faces market competition. In Q3 2025, TIM Ultrafibra revenue was R$228 million. The fixed service ARPU (Average Revenue Per User) for TIM Brasil stood at R$94.7 in Q3 2025. To put this in context against prior performance, the ARPU for TIM Ultrafibra was R$99 in Q3 2024.

The more-for-more strategy is clearly visible in the mobile segment's focus on higher-value customers, driving ARPU increases. TIM S.A. (TIMB) maintains the highest mobile ARPU in the industry, hitting a record R$33.1 in Q3 2025, a 4.6% increase year-on-year. Postpaid customers are central to this, contributing approximately 70% of mobile service revenue in Q2 2025, with postpaid revenues growing 12.2% year-over-year in the first half of 2025. The postpaid ARPU specifically reached R$44.1 in Q3 2025. This strategy was supported by repricing activities that began in Q1 2025, affecting about 4 million fixed lines and roughly 1.7 million mobile lines.

TIM S.A. (TIMB) is also developing its digital ecosystem, which includes exploring new revenue streams through partnerships. The company is focused on developing financial service partnerships as a strategic initiative moving forward.

Here's a quick look at the key performance indicators supporting these value propositions as of the latest available 2025 data:

The execution of the network strategy is also tied to efficiency gains:

• Network modernization in São Paulo resulted in a 40% increase in network capacity in the area.
• The modernization effort led to a reduction in total energy consumption by approximately 15%.
• The company is on track to meet its projected 5%-6% revenue growth for 2025.

TIM S.A. (TIMB) - Canvas Business Model: Customer Relationships

Low-churn customer base management, with postpaid churn at 0.8%

TIM S.A. is maintaining a tight grip on its most valuable customers, evidenced by the postpaid monthly churn rate holding steady at 0.8% in the third quarter of 2025. This low rate reflects successful customer base management efforts. The focus on higher-value segments is clear, as postpaid lines added 415,000 net additions in Q3 2025 alone, with prepaid-to-postpaid migrations showing a double-digit increase over the same period. By Q1 2025, postpaid lines already made up 50% of the total customer base. To be fair, this focus on control plans is driving the revenue mix significantly.

Digital self-service tools and personalized app offers

The company is pushing customers toward digital channels to manage their accounts. While specific adoption statistics for self-service tools aren't broken out, the overall strategy emphasizes digital presence. The mobile ARPU (Average Revenue Per User) reached R$33 per month in Q2 2025, noted as the highest in the industry, which suggests that personalized offers delivered through these digital touchpoints are effective in driving spend.

Dedicated corporate sales and support for B2B clients

TIM S.A. is aggressively evolving its B2B footprint, highlighted by the creation of a dedicated B2B Vice Presidency. This move supports the 2025-2027 Strategic Plan pillar focused on B2B expansion. The B2B segment saw contracted revenues reach R$435 million since early 2024, partly due to solutions like TIM Smart Mining, which has a partnership with Vale. Furthermore, the acquisition of V8.Tech, which reported net revenue of around R$235 million over the 12 months ending September 2025, directly enhances the ability to deliver end-to-end digital transformation projects for its corporate clients, which number over 100 across various sectors.

Upselling current customers to higher-value postpaid plans

The success in upselling is a core driver of financial performance. In Q2 2025, postpaid revenue growth was 12.2% year-over-year, contributing nearly 70% of total mobile service revenues. This growth is explicitly attributed to solid ARPU dynamics held by control-to-pure postpaid upselling. The strategy is clearly about moving customers up the value chain, as seen by the 6% increase in Mobile ARPU over 2023 reported in early 2025.

Loyalty programs and exclusive device offers

TIM S.A. uses targeted promotions to lock in high-value customers. For instance, exclusive Black Friday offers, featuring devices like the iPhone 16E and PlayStation 5, were deployed to help maintain the solid trend in postpaid customer acquisition and retention. The company also announced the rollout of a strategic loyalty partnership in Q3 2025, reinforcing its value proposition beyond just network quality.

Here are some key customer relationship metrics as of late 2025:

The management of the customer base is heavily weighted toward the postpaid segment, which is the primary source of revenue stability and growth.

• Postpaid revenue grew by 12.2% year-over-year in Q2 2025.
• The company is focusing on a prepaid-to-control customer migration strategy.
• B2B strategy is reinforced by acquiring technology firms serving over 100 corporate clients.
• Network leadership, with 5G in 1,000 cities, supports the 'Best Service' pillar of customer interaction.

TIM S.A. (TIMB) - Canvas Business Model: Channels

You're looking at how TIM S.A. (TIMB) gets its services-from mobile plans to enterprise cloud solutions-into the hands of its customers as of late 2025. The channel strategy is clearly shifting, leaning hard into digital and specialized B2B direct engagement, while maintaining a physical footprint.

The physical presence is still a factor, though specific store counts aren't readily available in the latest reports. What we do see is massive network expansion which underpins all sales channels. By the third quarter of 2025, TIM S.A. reported expanding its 5G network to 1,000 cities in Brazil. This network leadership is a key enabler for all channel sales, especially for high-value postpaid and fixed-line offers.

For the high-value corporate segment, the direct sales force is getting a significant boost. TIM S.A. is reinforcing its B2B strategy by acquiring V8.Tech, a move that immediately bolsters its direct delivery capability for digital transformation projects. This specialized direct sales effort is now supported by a newly created B2B-focused Vice Presidency.

Digital channels are showing concrete results, especially in advertising and B2B lead generation. By September 2025, the company reported reaching over 270 advertisers through its digital inventory, which is combined with Google and Meta platforms. The mobile app and website are the primary self-service points for the massive consumer base, which saw 415,000 net postpaid line additions in Q3 2025 alone.

The structure of channel engagement can be broken down like this:

• Nationwide network of physical retail stores (for general consumer sales and prepaid activation).
• Direct sales force for large corporate and B2B accounts (now enhanced by the V8.Tech acquisition).
• Digital channels: website, mobile app, and social media (driving self-service and digital ad revenue).
• Third-party retailers and authorized dealers for prepaid sales (critical for mass market penetration).
• Customer service centers and online support (handling post-sale interactions).

Here's a quick look at the numbers that reflect the strength and focus across these channels as of late 2025:

The focus on high-value postpaid customers, who now represent a significant portion of the revenue base, suggests the direct sales force and digital channels are prioritized for upselling and service delivery. The postpaid monthly churn rate remained low at 0.8% in Q3 2025, reflecting defintely effective customer management across these touchpoints. Also, the EBITDA margin hit 51.7% in Q3 2025, showing that the mix of channels is driving profitable growth.

The acquisition of V8.Tech, with its 380 professionals, signals a clear intent to deliver complex, end-to-end digital solutions directly to enterprise clients, moving beyond simple connectivity sales.

Finance: draft 13-week cash view by Friday.

TIM S.A. (TIMB) - Canvas Business Model: Customer Segments

You're looking at the core customer base for TIM S.A. (TIMB) as of late 2025, which is heavily segmented to maximize revenue from the most profitable users while stabilizing the legacy base. The strategy clearly favors the high-value mobile segment.

High-value Postpaid mobile users (main revenue driver)

This group is the engine for TIM S.A.'s revenue growth, driven by a successful 'more-for-more' strategy that balances attractive offers with revenue increases. You see this in the consistent growth and high ARPU figures.

Postpaid services are now extremely important, with revenues representing almost 70% of mobile service revenues as of Q1 2025, and postpaid lines making up 50% of the total base in that quarter. In Q3 2025, the company added 415,000 postpaid lines, continuing a trend that saw 14 consecutive quarters of double-digit postpaid revenue growth, with +12.2% YoY growth reported in 1H25.

The monetization here is clear:

• Postpaid ARPU (Average Revenue Per User) reached BRL 44.1 in Q3 2025.
• Postpaid ARPU excluding machine-to-machine (ex-M2M) connections hit a historical high of BRL 55.5 in Q3 2025.

Prepaid mobile users (focus of a recovery plan)

The prepaid segment is actively being managed down in favor of higher-value plans, though there are signs of stabilization. The focus isn't on growth here, but on slowing the decline and migrating customers.

As of Q3 2025, prepaid revenues were down 8.9% year-over-year, reflecting this migration strategy. Management noted seeing the first signs of stabilization in Q3 2025, supported by targeted offers. This segment is the subject of a medium-term three-step recovery plan focusing on offers, communication, and channel tactics to slow the decline, as noted in Q1 2025 results.

Corporate/B2B clients seeking IoT, cloud, and private network solutions

TIM Enterprise is a key area for new revenue streams, focusing on digital services beyond basic connectivity. The contracts are often multi-year, providing revenue visibility.

In the first half of 2025, TIM Enterprise reported total revenues of 1.6 billion euros, marking a 4.7% year-on-year increase. Cloud services are leading this charge, showing 25% year-on-year growth in 1H25. Furthermore, the company was targeting the closure of over 1.2bn reais (US$207mn) in corporate contracts by mid-2025, with a pipeline that could add another 600mn reais by the end of June 2025.

Here are some key B2B metrics from the prior year, which set the stage for 2025 targets:

Residential customers for fixed ultra-broadband (TIM Ultrafibra)

This segment is showing signs of recovery after a period of less focus. The strategy here is profitable growth with a selective approach.

TIM Ultrafibra ended Q3 2025 with 823,000 clients, marking 8 consecutive months of positive net adds and a client base resuming growth at 3.7% year-over-year. The Average Revenue Per User (ARPU) for this fixed broadband unit was BRL 94 in the third quarter.

Small and medium enterprises (SMEs) needing digital connectivity

TIM is actively targeting SMEs through its 'Customer Platform' model, expanding beyond core connectivity into higher-value services.

The plan includes launching utilities specifically for SMEs in 2025. This initiative is projected to generate 200 million euros in cumulative revenues by 2027, signaling a longer-term revenue expectation from this customer group.

To summarize the mobile customer base evolution as of late 2025:

• Total Mobile Customer Base: Over 60 million customers.
• Postpaid Churn (Monthly): Remained low at 0.8% in Q3 2025.
• Mobile Service Revenues Growth (9M 2025): Increased 5.2% annually.
• Blended Mobile ARPU (Q3 2025): Reached BRL 33.1.

TIM S.A. (TIMB) - Canvas Business Model: Cost Structure

The Cost Structure for TIM S.A. is heavily weighted toward network investment and operational maintenance, reflecting its core business as a telecommunications provider in Brazil. You see significant outlays for infrastructure and regulatory adherence.

High capital expenditure (CapEx) for network expansion is a defining feature, with the 2025 nominal CapEx guidance set between R$4.4 Bln - R$4.6 Bln per year, as part of the 2025-2027 Strategic Plan. This investment is focused on maintaining and expanding network coverage leadership.

Spectrum license and regulatory compliance costs are substantial, evidenced by the capital expenditures and investments for mobile telephone licenses/spectrum in the first half of 2025 totaling 834 million euros.

Network operating expenses show a focus on efficiency, though specific component costs can rise. For instance, Network and Interconnection expenses in the third-quarter of 2025 rose 10.1% year-over-year, reaching R$1.211 billion, driven by higher traffic costs and digital content provider contracts. Overall, TIM S.A. operating expenses for the twelve months ending September 30, 2025, were $3.536B, representing a 6.39% decline year-over-year.

Personnel and sales commission costs are managed through efficiency drives. Selling and marketing expenses in Q3 2025 were R$961 million, a 4.8% decline compared to the previous year, partly due to lower advertising costs related to sponsorships. The TIM Group headcount as of June 30, 2025, stood at 25,990.

Costs of acquiring new businesses reflect inorganic growth strategies, particularly in the B2B segment. The agreement to acquire V8.Tech involved an upfront price of R$140 million, with the final payment potentially reaching R$280 million in total over six years, contingent on earn-out conditions.

Here's a quick view of some key cost-related figures:

You should watch the interplay between the planned annual CapEx and the actual spend on licenses, as that is a major fixed outlay. Also, the decline in total operating expenses despite network investment suggests defintely successful cost control in other areas.

• Headcount at June 30, 2025: 25,990.
• V8.Tech Net Revenue (12 months ended Sept 2025): Roughly R$235 million.

Finance: draft 13-week cash view by Friday.

TIM S.A. (TIMB) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for TIM S.A. (TIMB) as of late 2025. The numbers show a clear pivot toward higher-value mobile customers and expanding digital enterprise services.

Mobile service revenue, driven by postpaid growth is the engine here. For the first half of 2025, postpaid revenue showed a strong increase of 12.2% year-over-year. This segment is critical, representing approximately 70% of total mobile service revenues. Mobile service revenues, as a whole, grew by 5.6% year-over-year in Q2 2025. The company maintains the highest mobile ARPU (Average Revenue Per User) in the industry, reported near R$33 per month in Q2 2025. This focus on higher-value customers is consistent; in 2024, postpaid services grew nearly 9% year-over-year.

The fixed side shows a different trend. Fixed broadband and ultra-broadband subscription fees, grouped under fixed telephony services, actually saw a slight contraction. Revenues from this segment decreased by 3.4% compared to the first half of 2024, largely attributed to the performance of the Ultrafibre offering.

For the B2B segment, the focus on digital and specialized services is translating into contract value. TIM Enterprise reported total revenues of 1.6 billion euros year-on-year in the first half of 2025. Within this, Cloud services are a bright spot, showing a 25% year-on-year growth. Separately, the company was targeting over 1.2bn reais (US$207mn) in corporate contracts by mid-2025, mostly in IoT and connectivity. As of Q3 2025, the B2B segment had 613mn reais in total contracted revenues from projects started since 2022.

The company is actively bolstering its digital capabilities; for instance, the acquisition of V8.Tech, which had roughly R$235 million in net revenue over the 12 months ending September 2025, directly strengthens the cloud and digital services offering.

Interconnection fees from other operators using the network are a component of service revenue, though specific standalone figures aren't broken out in the latest reports, which focus more on service revenue growth drivers.

Here's a quick look at some of the reported revenue metrics for the first half of 2025 (H1 2025) and related figures:

The overall picture is one where the core mobile business is successfully migrating users to higher-yield postpaid plans, while the B2B segment is strategically investing in high-growth digital services, even as legacy fixed services see some contraction. Finance: draft 13-week cash view by Friday.