Nubank's telecom operator is still small – but it's already shaking up the sector, says XP
Two years after starting its mobile phone operations, Nubank has yet to reach the scale many people imagined – but even with a small market share, NuCel is already shaking up the sector's economics. A report just published by XP shows that Nubank's entry into the telecom sector is already having an impact.
A report by XP finds that Nubank's mobile phone unit, NuCel, is having an economic impact on the sector, despite having a small market share of 0.5%. Launched in April 2024, NuCel has gained 1.1 million clients as of July, forcing competitors Vivo, TIM, and Claro to improve offers, expand data plans, and intensify customer retention efforts.
The entry of NuCel has led to more alternatives, larger data plans, and lower effective entry prices, making it economically less favorable for operators to conquer and retain clients. According to analyst Bernardo Guttmann, the change is subtle, with a higher barrier to unilateral price adjustments and increased costs to defend marginal clients.
The impact is not linear, with TIM Brasil being the most affected and Claro being in the most favorable position due to its partnership with NuCel.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
