Nio: The 'new Oi's' plans to return to the world of mobile internet

However, the viability of the business depends on tough negotiations with market leaders, as, in Nio's calculations, the venture would only be worthwhile if wholesale rental of the network infrastructure were discounted by 20% to 30% compared to retail prices.

Even if the deal is difficult to achieve, this is the ideal scenario for the company and the one it is most confident in considering. When contacted, the company declined to comment on this matter. However, the company does not rule out participating in the upcoming radio frequency auctions held by Anatel, says Marcio Fabbris, president of Nio.

According to the executive, the company has the financial capacity to enter the bidding process. But only if the conditions are favorable. This decision shouldn't take long, as the agency is expected to hold an auction within two or three years for the frequencies to be used in what will become 6G.

Why is it important?

When it exited the mobile market, Oi had the lowest prices on the market. According to a November 2021 Idec survey, the price of a Gigabyte prepaid plan was one-fifth the price charged by its competitors in São Paulo.

If today, the big three provide 95% of the country's cell phone lines —Vivo (38.5%), Claro (33.2%) and TIM (23.4%)—, before Oi left the scene, the concentration among them was lower, at 80% —Vivo (33%), Claro (27%) and TIM (20.4%), in January 2022. A company with an appetite to operate on a national scale could boost the sector.