TIM Participacoes : Anatel approves TIM’s Conduct Adjustment Term (TAC)

TIM PARTICIPAÇÕES S.A.

Publicly-Held Company

Corporate Taxpayer's ID (CNPJ/MF):

02.558.115/0001-21

Corporate Registry (NIRE): 33 300 276 963

NOTICE TO THE MARKET

Anatel approves TIM's Conduct Adjustment Term (TAC)

TIM Participações S.A. ("Company") (B3: TIMP3; NYSE: TSU), in compliance with Article 157 of Law Nr. 6,404/76 and the provisions of CVM Instruction Nr. 480/2009, hereby informs its shareholders, the market in general and other interested parties that:

Following the information already disclosed in the Company's financial statements in note 24 e4, it has been negotiating since June 2018, with the sector regulator (ANATEL), a Conduct Adjustment Term (TAC). Therefore, as of today, Anatel's Board of Directors unanimously approved TIM's TAC.

The agreement covers a sanction reference value of R$ 627 million. TIM's commitment foresees actions for improvement in three pillars - customer experience, quality and infrastructure - through initiatives associated with improvements in the licensing process of stations, efficient use of numbering resources, evolution of digital caring channels, reducing complaint rates, repairing users and strengthening transport and access networks.

In addition, it includes an additional commitment to bring mobile broadband through the 4G network to 366 municipalities with less than 30,000 inhabitants reaching over 3.4 million people.

The new infrastructure will be implemented in three years - more than 80% in the first two years - being guaranteed by the Company the sharing regime with the other providers.

TIM's TAC follows Decree No. 9,612/2018, which provides for public telecommunications policies with prioritization of service to locations that do not have this structure. The TAC still needs to be reviewed by the Federal Court of Audit (TCU) and the reference value may be adjusted in accordance with applicable regulations.

The Company will keep its shareholders and the market informed in accordance with the regulations in force.

Rio de Janeiro, August 22, 2019.

TIM Participações S.A.

Adrian Calaza

Chief Financial Officer and Investor Relations Officer