Alberto Blanco, the CEO of Brazilian MVNO Veek, announced that the recently launched operator is on track to increase to 300,000 customers within six months and break 1 million user by the end of 2023. If achieved, this would be a significant increase from the provider’s current base of 20,000 subscribers. These strong growth projections are based off of its recent adoption of a B2B2C model—or “Freemium” model—in which Veek’s users pay nothing for their mobile plan and the operator’s revenues are instead generated from brands that then advertise to these customers and are able to push special promotions through the operator’s app.|
Veek’s model, while not exactly unique, has not commonly been seen outside of more developed and expensive markets (like the United States and Canada). The model offers an innovative way to expand customer base and increase revenue. The freemium package, where brands pay for the SIM and the service, while customers only have to “check in” once per day in the Veek app to get free service, is a smart way to attract customers, especially younger and/or budget conscious ones. In addition, if the mandatory check-ins become too onerous, the user can always migrate to one of Veek’s paid options. This flexibility allows customers to try the service and experience its quality before committing to a paid plan.
While the ad-driven mobile provider model has been tried before in markets such as the US and Canada, Veek’s success in Brazil is a sign of the growing competitiveness and maturity of the mobile industry worldwide. If Veek is able to achieve these ambitious growth targets, it likely signals that the Freemium model could be successful in other emerging markets around the world.