IHS Towers sells Brazilian fiber network to TIM for $453 million

IHS Holding, a global telecom infrastructure group led by U.S.-Nigerian telecom tycoon Sam Darwish, is exiting the Brazilian fiber market, selling its 51% stake in I-Systems Soluções de Infraestrutura S.A. to Brazilian telecom giant TIM S.A.

The deal, valued at $452.6 million, gives TIM full control of one of Brazil’s largest shared fiber networks, spanning 22,250 route kilometers and covering over 6.4 million Fiber-to-the-Home (FTTH) households.

The transaction highlights a global telecom trend: infrastructure firms recalibrating for higher-return, lower-capex operations, while operators consolidate local networks to scale broadband delivery and boost shareholder value. Regulatory approval is expected in 2026.

IHS Towers exits Brazil fiber market
The sale marks IHS Towers’ strategic move to exit high-capital, low-return markets. Chairman Sam Darwish said the transaction aligns with the company’s focus on core high-return infrastructure.

The company retains its tower and fiber assets in other regions, concentrating on markets with stronger operational efficiency and profitability.

TIM gains full fiber network control
TIM Brazil will leverage full ownership to optimize broadband delivery and operational efficiency. CEO Alberto Griselli highlighted the move as a key strategy to strengthen FTTH coverage and consolidate operations.

The network now covers over 9.3 million homes, including 6.4 million FTTH households.

FTTH expansion to millions of homes
TIM’s acquisition positions it to accelerate fiber rollout, meet rising broadband demand, and boost profitability. The transaction allows TIM to fully integrate I-Systems’ network, reducing operational complexity and supporting future growth initiatives across Latin America.

Strategic shift for higher returns
IHS Towers’ divestment reflects a global telecom infrastructure trend: companies focusing on lower-capex, higher-margin businesses, while operators consolidate local fiber networks to capture scale benefits.

The deal underscores the growing importance of strategic specialization in global telecom markets.