Brazilian telecom market faces shifting pricing and new competition

Major Brazilian telecommunications providers are shifting their pricing strategies and facing new competitive pressures. TIM and Vivo have both discontinued ultra-low-cost mobile plans, such as the R$ 20 monthly options, replacing them with more expensive alternatives or annual packages that require a degree of customer loyalty.

Simultaneously, TIM is facing increased competition from NuCel, a mobile operation by Nubank, and regional internet providers like Brisanet. Analysis from XP Investimentos indicates that NuCel saw significant growth, expanding from approximately 60,000 customers in September 2025 to 1.1 million by July 2026. While Vivo maintains a stronger position in the post-paid market with higher net additions and a more stable customer base, TIM is attempting to counter market share losses by focusing on convergence strategies, such as combining mobile and broadband services through its Ultracombo packages.