Vodafone Netherlands Opens 4G to Prepaid and Hybrid Customers

Vodafone Netherlands is expanding access to its 4G network to prepaid and hybrid postpaid customers (meaning those on no-term contracts). The cost of access, in addition to the standard data plan, is €2.50 (US $3.41) per month for hybrid customers and €5.00 (US $6.82) for prepaid users. Speeds claimed are up to 25 Mbps for download and 12.5 Mbps for upload. Vodafone said recently that it plans to accelerate the rollout of its 4G network in order to reach nationwide coverage by September.

Vodafone’s decision to make its LTE service available to prepaid and hybrid customers is a reminder that in developed economies such as the Netherlands, sophisticated data use has become sufficiently widespread that high-speed services are desired by a range of consumers, not just those at the high end of the market. Even those who choose to save money by going for the prepaid option are accessing the kind of content—video, for example—that requires a 4G signal in order to get full functionality. Furthermore, perhaps due to recession and perhaps due to changing usage habits in general, more and more consumers are opting to be free from the constraints of contracts—which accounts for the prevalence of hybrid setups as well as prepaid. Vodafone is wise to realize that these customers cannot be left out of the new 4G world, and to provide them with access at very reasonable rates. The operator is, of course, also aware that if 4G is to fully come into its own throughout the country, full buy-in from the customer base is required in addition to the proliferation of physical infrastructure. 

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes two noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx

Amazon’s Smartphone Likely to Come with AT&T Sponsored Data

The high-end smartphone that internet giant Amazon plans to launch later this spring will likely come with sponsored LTE data from U.S. operator AT&T, according to reports. While few details have been released, the plan, which will be called Amazon Prime Data, would allow AT&T customers to stream Amazon’s content—TV, movies and music—over their Amazon smartphones, without it counting against their LTE data allotments. While Amazon’s upcoming smartphone is rumored to have many game-changing advanced features such as a 3-D effects and gesture-based interface options, the real draw for users may well be the free data for access to Amazon’s high-data-consumption branded entertainment offerings. Amazon has followed this strategy before: It has always offered free 3G data for its Kindle readers, and in 2012 it offered 250 MB of LTE data per month for the Kindle Fire HD device for an annual fee of $50. In short, the company realizes that access to data is what the its content business hinges on, and it is willing to do a deal with a major mobile operator to get it. Providing consumers with data opens the door for Amazon—and other similar internet-based entities—to charge consumers for the actual content. From the point of view of mobile operators, this development, if it actually goes through and proves successful, would constitute yet another piece of evidence that partnering with large entities like Amazon will be an increasingly attractive option for revenue generation. And considering that the FCC, a U.S. regulatory agency, is expected to soften its net neutrality restrictions in the new rules that will be announced on 15 May, the climate is likely favorable to the proliferation of special-access data arrangements between operators and content providers.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes two noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx