Nio, a broadband operator controlled by V.Tal, a telecommunications infrastructure company, debut in the market with an aggressive strategy. Will freeze the price of fiber internet plans until January 2018. The company comes from Oi Fiber, sold to V.Tal in a transaction of R $ 5.7 billion, completed last February. Already born with a base of approximately 4 million clients, presence across the country and market leadership in 14 states, plus the Federal District.
“We are coming a little later at the party. There are more than 10,000 carriers [de banda larga] In Brazil, then we needed to arrive with a new thing, ”said Marcio Fabbris, CEO of Nio, meeting with journalists to present the new brand. The executive, however, assured:“ Let’s not go to price war ”.
In this first moment, Nio will work with only three fiber internet plans:
- The cheapest costs $ 100 per month, with a speed of 500 mega.
- The intermediary has a monthly fee of $ 130, 700 mega speed with Wi-Fi6 router and gives free access, for 12 months, to the platform of streaming GloboPlay.
- These are also benefits of the most expensive plan, which has 1 speed gig, with additional point, for $ 160 per month.
“We are not entering lower prices than the market practices. We are on the minimum level of profitability. Selling below 100 reais would be a temerity,” said Fabbris.
“At this time when inflation can get out of control or not, we had the courage to go to the heart of the matter and give peace to the customers, offering this news,” he added.
Strategy came from much financial analysis
When freezing prices, Nio wants to avoid or save customers to call the call center of the company to negotiate price adjustments in the monthly fees. In addition to decreasing demand service – which reduces costs – the chances of the subscriber migrate to the competition, according to Fabbris. “We want to bet on a greater customer life at our base.”
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Nio’s CEO says the strategy came from much financial analysis. According to him, the company will seek appropriate profit for the operation, even freezing tuition for almost three years. The company rents the neutral fiber optic network of its controller, V.Tal and has no interest in building its own structure, so there are no large investments on the horizon.
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In the short term, Nio wants to expand partnerships with other platforms streaming to offer subscribers. There is also a desire to go into mobile service, as a complement to fiber optics, but Fabbris has already said that the company will not buy frequency or build network. “We need partnership,” he said.
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Oi Fiber worked with seven types of plan. Customers who have migrated to Nio are not required to join new packages, but this is a desire for the company, which even though it does not have a targetexpects your base to grow above the market average.
Along with the plans, Nio will also centralize customer support in a single application.
Oi sold its large band operation to you in an operation involved equity and not money. With this, the former mobile telephone company now had a 27.5% stake in Nio’s controlled.
