Nubank, Brazil’s digital banking giant with over 100 million customers, has set its sights on the telecom industry. The fintech company unveiled NuCel, a new mobile phone service, in partnership with Claro Brazil.
This move marks Nubank’s first major venture outside the financial sector, potentially shaking up the telecom market. NuCel aims to simplify mobile plans for users.
The service will cover 93% of Brazil’s territory and offer 5G connectivity where available. Nubank’s CEO in Brazil, Lívia Chanes, emphasized the ubiquity of mobile services among their customers.
She stated that NuCel addresses common pain points in the market. The new service will roll out gradually over the coming months.
Initially, it will only work with SIM-capable devices. NuCel offers three prepaid plans: 15GB for R$45, 20GB for R$55, and 35GB for R$75 per month.
These prices compete well with existing market offerings. All plans include unlimited local and long-distance calls. Users also get unlimited WhatsApp usage and access to the Nubank app, even without data.
An exclusive savings account with a 120% CDI yield on deposits up to R$10,000 ($1,785) sweetens the deal. Nubank identified several issues in the current telecom market.
These include poor customer service, unexpected price hikes, and difficulties in changing or canceling plans. NuCel aims to address these problems with transparent, flexible, and commitment-free plans.
Nubank’s Bold Move into Telecom
The company operates NuCel under the MVNO model, regulated by Anatel. Unlike typical MVNOs, Nubank has a revenue-sharing agreement with Claro.
This arrangement aligns the interests of both parties more closely. Analysts from XP suggest Apple could capture up to 7% of the mobile market within three years.
This prediction underscores the potential impact of Nubank’s entry into the telecom sector. It may lead to increased competition and potentially lower prices for consumers.
Established telecom companies like Vivo and TIM may need to adapt to this new competition. Nubank’s customer-centric approach and digital expertise could revolutionize the telecom sector.
This mirrors the company’s impact on the financial industry. The Brazilian telecom market has recently seen more rational pricing after Oi’s exit.
Nubank’s entry could disrupt this equilibrium. The company’s focus on simplicity and transparency may force other providers to improve their services.
Nubank’s expansion into telecom represents a significant shift in the company’s strategy. It demonstrates the firm’s ambition to diversify beyond financial services.
The success of NuCel could have far-reaching implications for both telecom and fintech industries in Brazil. As the service rolls out, consumers will have more choices in the mobile market.
NuCel’s success will depend on its ability to deliver on its promises of simplicity and transparency. If successful, it could reshape the telecom landscape in Brazil.
Source: https://www.riotimesonline.com/nubank-disrupts-brazilian-telecom-market-with-nucel-launch/