Vodafone has launched its new zero-rated passes across Europe in recent months. Each Pass offers unlimited data for a certain type of content, such as chat apps, social networks, music or video streaming, or navigation, for a fixed monthly fee. What's interesting is the Pass incorporates elements of both zero-rating and unlimited data. The new offer may be driven by fears of the complete commoditisation of data, in the face of more operators around Europe trying out unlimited data plans. The passes give Vodafone a bit more control over prices, but for consumers it makes mobile plans even more opaque.
Since the summer, Vodafone has launched the passes in Greece, Italy, Romania, Czech Republic, Spain, Germany and the UK. The cost of a pass is in addition to a monthly plan and is usually EUR 5 per month for chat, social or music apps and EUR 10 for video. If customers take all the passes, they receive a discount. The offer responds to similar zero-rated plans from rivals such as Deutsche Telekom with its StreamOn, Wind Tre with its own Veon app or 3 UK's Go Binge. While some may raise questions of net neutrality, this appears to have been considered a minor risk, as Vodafone has rolled out the offer across Europe.
As Vodafone joins the zero-rating trend, other operators have gone further, with full unlimited data plans. Tele2 has launched unlimited data in several countries, and T-Mobile also introduced an offer in the Netherlands at the start of this year (EUR 35 per month). This limits any out-of-bundle revenue to international calls or roaming outside the EU. For challengers like Tele2, this is a sensible move to take market share. The risk is a race to the bottom, so the first movers like T-Mobile need to maintain their price level (note it already offers a discount to EUR 30 per month when multiple family members take the plan).
Whether zero-rated offers like the Pass will prove a commercial success remains to be seen. It appears to be designed more to protect the business (following the unlimited trend without losing pricing power) than to benefit customers. Vodafone already offers a wide choice of postpaid plans in its footprint, and in many countries customers also face the choice of bundling with fixed offers. The Passes are unlikely to help them understand how much data they need, and only the few who know their data usage well can benefit price-wise from the Passes. Consumers who want a 'worry-free' experience may be more likely to choose a 'real' unlimited plan, depending on their budget.
