Pursuant to Rule 13a-16 or 15d-16 of the
22640-102 Rio de Janeiro, RJ, Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
TIM PARTICIPAÇÕES S.A.
NOTICE TO THE MARKET
In the 14th and 15th of December, Anatel conducted an auction for 3G frequencies (H band) and 2G (SMP leftovers). It was auctioned 60 lots, resulting in R$2.7 billion and an average premium of 31% (or R$640 million).
TIM acquired 8 lots, with an offer of R$81.8 million (but a disbursement of R$65.5 million when considering the residual lifetime of the current license) and an average premium of 32% over the minimum price. We consider that our objectives were met, as we intended to adopt a strategy of selective and balanced performance in light of better resource allocation. This year we are investing approximately R$3.0 billion in total (under IFRS).
2G – A selective approach. Even before the auction, TIM already had a spectrum position close to the legal cap of 80 MHz in the priority areas, consequentially we did not see the need to push an aggressive approach in the auction. We focused our efforts in the regions where there was opportunity to strengthen our presence.
3G – We did not acquire additional spectrum. Our current spectrum positioning is in line with our planning of data growth, focusing on coverage and transmission. In São Paulo for example, we have the largest spectrum for the 3G technology.
In the table below, we present a summary of our spectrum scouts before and after the auction.
|
|
|
|
|
Before (MHz) |
|
After (MHz) | ||||
|
Regional |
Area |
|
|
2G |
3G |
Total |
|
2G |
3G |
Total |
|
TIM São Paulo |
Metro |
|
|
45 |
30 |
75 |
|
45 |
30 |
75 |
|
Countryside |
|
|
45 |
20 |
65 |
|
45 |
20 |
65 | |
|
Franca and PGO’s 33 Sector |
|
|
45 |
20 |
65 |
|
45 |
20 |
65 | |
|
TIM South |
PR and SC |
|
|
50 |
20 |
70 |
|
60 |
20 |
80 |
|
RS |
|
|
35 |
20 |
55 |
|
35 |
20 |
55 | |
|
Londrina and Tamarana |
|
|
35 |
20 |
55 |
|
45 |
20 |
65 | |
|
Pelotas and PGO’s 30 Sector |
|
|
50 |
20 |
70 |
|
50 |
20 |
70 | |
|
TIM Northeast |
AL, CE, PA, PE, PI and RN |
|
|
50 |
20 |
70 |
|
50 |
20 |
70 |
|
TIM East |
MG |
|
|
50 |
20 |
70 |
|
60 |
20 |
80 |
|
BA and SE |
|
|
50 |
20 |
70 |
|
50 |
20 |
70 | |
|
CTBC's expansion area |
|
|
50 |
0 |
50 |
|
60 |
0 |
60 | |
|
CTBC's region in MG |
|
|
50 |
0 |
50 |
|
50 |
0 |
50 | |
|
TIM North |
AM, AP, MA, PA and RR |
|
|
35 |
30 |
65 |
|
45 |
30 |
75 |
|
TIM Rio de Janeiro |
ES and RJ |
|
|
45 |
20 |
65 |
|
45 |
20 |
65 |
|
TIM Mid-West |
AC, DF, GO, MS, MT, RO and TO |
|
|
35 |
20 |
55 |
|
35 |
20 |
55 |
|
PGO’s 22 and 25 Sectors |
|
|
35 |
20 |
55 |
|
35 |
20 |
55 | |
Rio de Janeiro, December 15th, 2010.
Claudio Zezza
CFO and Investor Relations
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TIM PARTICIPAÇÕES S.A. | |||
| Date: December 15, 2010 | By: | /s/ Claudio Zezza | |
| Name: Claudio Zezza | |||
| Title: CFO and Investor Relations Officer | |||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.