TIM S.A. (TIMB): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at TIM S.A.'s strategy as we close out 2025, and honestly, the story isn't about chasing every subscriber; it's about quality over volume. My take, after two decades watching this space, is that their pivot is working: they've hit 70% urban 5G coverage while driving the industry's highest mobile ARPU, hitting a record R$33.1 per month in Q3. This focus on high-value postpaid customers-now accounting for 70% of mobile service revenue-shows real pricing discipline. Want to see how Product, Place, Promotion, and Price all line up to support this premium strategy? Read on for the full breakdown.

TIM S.A. (TIMB) - Marketing Mix: Product

You're looking at the core offerings of TIM S.A. (TIMB) as of late 2025, and it's clear the product strategy is heavily weighted toward premium mobile services and fiber infrastructure. The development focus is on high-speed connectivity and expanding the digital service layer for businesses.

The mobile segment is clearly prioritizing the higher-value customer. Postpaid revenue growth was strong, increasing by 12.2% year-over-year in the first half of 2025, and these customers now represent nearly 70% of the total mobile service revenue base. To be fair, the prepaid side is shrinking, with prepaid revenue declining 8.9% in Q3 2025, largely because of customer migration to those better plans. The mobile ARPU (Average Revenue Per User) hit a record R$33.1 in Q3 2025, with the postpaid ARPU reaching R$44.1. The company added 450,000 new postpaid customers in Q2 2025 alone.

The network product itself is defined by 5G leadership. As of Q2 2025, TIM S.A. reported 5G coverage reaching 70% of the urban population. This availability is driving adoption; 28% of total devices are now 5G-capable, and 30% of total data traffic is flowing over the 5G network.

For fixed services, the product is essentially pure fiber. The strategy emphasizes Fiber-to-the-Home (FTTH) for superior quality. Over 94% of TIM's broadband customer base utilizes FTTH technology. While the overall fixed service revenue saw a slight dip in Q3 2025, the focus remains on this high-quality base, with the fixed service ARPU at R$94.7 for that quarter.

Here's a quick look at the key product metrics as of the latest reported periods:

The B2B portfolio is being aggressively enhanced through acquisitions to move beyond just connectivity. TIM S.A. is building out advanced digital capabilities. The company has secured over €4 billion in contracts with enterprise and government customers. A recent move to strengthen this was the agreement to acquire V8.Tech, a company with roughly R$235 million in net revenue over the 12 months ending September 2025, for an upfront payment of R$140 million plus potential earn-outs up to another R$140 million. This acquisition directly targets high-value areas like multicloud and artificial intelligence integration.

The B2B product suite includes several key areas:

• - IoT portfolio serving 109 companies (Q2 2025).
• - Corporate contracts pipeline potentially adding R$600 million by mid-2025.
• - Cloud services being a main line of business, with the Italian unit showing €1.1 billion in 2024 revenue.
• - Digital transformation and hybrid cloud solutions being integrated via the V8.Tech acquisition.

Finally, converged bundles are a key part of the consumer platform strategy, aiming for revenue growth beyond basic connectivity. The Customer Platform model is seeing success, with double-digit growth in the TimVision customer base. This platform is expected to drive 'Beyond Connectivity' revenue growth of more than 10% over the plan period, with utilities for small and medium-sized businesses alone expected to generate 200 million euros in cumulative revenues by 2027, starting in 2025.

TIM S.A. (TIMB) - Marketing Mix: Place

You're looking at how TIM S.A. gets its services into the hands of customers across Brazil, which is a massive undertaking given the country's geography. The distribution strategy is built on a foundation of unparalleled network reach, supplemented by diverse customer access points.

Network Footprint and Coverage Reach

TIM S.A. has established an extensive national footprint, notably becoming the first operator to cover all 5,570 Brazilian municipalities with 4G service, meaning at least one antenna is present in every location. This forms the bedrock of their accessibility strategy. Furthermore, the 5G rollout has been aggressive, positioning TIM as a leader in next-generation access.

The company reports reaching 1,000 cities with 5G coverage as of October 2025, which is a significant milestone. This network expansion covers approximately 70% of Brazil's urban population. For direct customer support and service activation, TIM S.A. has ensured a physical presence by covering 100% of the neighborhoods in all 27 state capitals with its 5G signal.

Here's a quick look at the scale of their network deployment as of late 2025 data points:

The company's distribution relies on a multi-channel approach to ensure customers can acquire services and devices where they prefer. This involves direct sales teams targeting high-value segments, a network of authorized dealers for broader geographic reach, and strategic placement within large retail chains for device sales and plan activations.

Digital and Self-Service Channels

To manage customer acquisition and ongoing service needs efficiently, TIM S.A. heavily promotes its digital sales channels. Customers use self-service applications for account management, plan changes, and troubleshooting, which helps keep operational costs down. While specific customer acquisition numbers via digital channels aren't public, the focus on postpaid growth, where 50% of the base now resides, suggests strong digital funnel effectiveness.

Fixed Broadband Distribution Strategy

For fixed broadband growth, the strategy is selective and focused on profitability, primarily leveraging the neutral fiber network I-Systems. As of Q3 2024, TIM's FTTH (Fiber to the Home) service reached 15 million homes in 212 Brazilian cities, serving 793,000 clients. The expansion continues with specific regional targets, such as the plan to increase 5G city coverage in Minas Gerais from 57 cities in May 2025 to 131 cities by December 2025, which often aligns with fixed infrastructure deployment areas.

Also, for specialized B2B and rural access, TIM S.A. has extended its 4G coverage to over 7,000 km of roads. This targeted infrastructure deployment is key to capturing enterprise value in logistics and agribusiness verticals.

You've got the network reach, and now you see how they push the services through different doors. Finance: draft 13-week cash view by Friday.

TIM S.A. (TIMB) - Marketing Mix: Promotion

You're looking at the promotional engine driving TIM S.A. (TIMB)'s shift to a higher-value customer base. Promotion here isn't just about flashy ads; it's about targeted communication that proves network superiority and incentivizes plan upgrades. The focus is clearly on cementing brand perception and driving profitable customer behavior.

Brand communication is heavily emphasizing superior network quality and the ongoing digital transformation. This narrative supports premium pricing and service adoption. As of the second quarter of 2025, TIM S.A. (TIMB) reported the highest mobile ARPU (Average Revenue Per User) in the industry at close to R$33 per month, showing the market is responding to the perceived value. This leadership in network quality is tangible: 5G coverage now reaches 70% of the urban population, and the company reinforced its leadership by expanding 5G to over 1,000 cities across Brazil. Furthermore, the network modernization project in São Paulo reached its completion in November 2025, a key promotional asset for the year-end. In recognition of its overall performance, TIM Brasil stands out in the Extel Rankings as the best-performing telecom company.

While the specific 'Imagine as possibilidades' campaign data isn't directly quantified here, its execution is evident through commercial tactics. The strategy employs a 'more-for-more' approach, balancing offer attractiveness with revenue growth. This is supported by exclusive Black Friday offers, such as those featuring the iPhone 16E and PlayStation 5, designed to enhance the value proposition and drive immediate action.

The core promotional effort is geared toward migrating prepaid customers to higher-value postpaid plans. This is a critical monetization strategy. In the third quarter of 2025, TIM S.A. (TIMB) added 415,000 new postpaid lines, with prepaid-to-postpaid migrations increasing by double digits compared to the previous quarter. Conversely, the prepaid customer base saw a contraction, receding by almost 7% in Q3 2025. This successful migration is directly reflected in the financial mix, as postpaid revenues grew by 12.2% year-over-year in the first half of 2025.

Strategic partnerships are a key promotional and revenue-diversification channel. The company is actively developing financial service partnerships and expanding its B2B IoT ecosystem. For instance, the TIM Smart Mining solution is gaining traction through a new partnership with Vale. Contracted revenues in the B2B segment have reached R$ 435 million since early 2024, demonstrating the commercial success of these ecosystem developments.

Focus on customer retention is paramount, as higher-value customers generate recurring revenue with low churn. The required metric for context is the postpaid churn decline of 0.7% in 3Q24. For the latest reported period, Q3 2025, postpaid monthly churn remained low at 0.8%, confirming efficient customer base management. This low churn, combined with the high postpaid penetration, shows the promotional strategy is locking in the most valuable users.

Here's a quick look at how these promotional outcomes translate into key performance indicators as of late 2025:

The success in driving postpaid adoption is also visible in the revenue mix. Postpaid services represent approximately 70% of mobile service revenues. This strategic success is underpinned by the continuous network investment and targeted offers.

Finance: draft the Q4 2025 promotional spend vs. postpaid net adds comparison by next Tuesday.

TIM S.A. (TIMB) - Marketing Mix: Price

TIM S.A. is executing a clear Volume-to-Value strategy, which means the focus is on maximizing the Average Revenue Per User (ARPU) rather than simply chasing raw subscriber counts. This approach reflects a pricing policy designed to extract more value from the existing and growing high-value customer base.

The mobile segment shows strong pricing power, evidenced by the fact that TIM S.A. reported the highest mobile ARPU in the industry at R$33 per month in Q2 2025. This premium pricing aligns with the company's shift toward more stable revenue streams.

The success of this value focus is most visible in the postpaid segment, which is the primary driver of revenue quality. Postpaid revenue grew by 12.2% year-over-year in the first half of 2025 compared to the same period in 2024. Furthermore, these higher-value customers now represent approximately 70% of mobile service revenue.

The pricing discipline extends to the fixed-line business, TIM Ultrafibra, though ARPU figures show some variation across quarters. For instance, data from Q3 2024 indicated a specific ARPU achievement:

More recently, the broadband ARPU was reported at BRL 94 in the third quarter of 2025.

The overall pricing strategy, supported by rational commercial approaches and selective price adjustments, is aimed at achieving top-line growth without significant customer attrition. Analysts forecast this discipline will help drive the 2025 annual revenue growth rate to 4.4%.

Here's a quick look at the key ARPU metrics observed:

• Highest mobile ARPU: R$33 per month (Q2 2025).
• Postpaid revenue growth: 12.2% (H1 2025 YoY).
• Postpaid share of mobile revenue: 70% (Q2 2025).
• TIM Ultrafibra ARPU: R$99 (Q3 2024).
• TIM Ultrafibra ARPU: BRL 94 (Q3 2025).
• Forecasted 2025 Revenue Growth: 4.4%.