Mexican MVNO Admits “Unlimited” Data Plan is Capped at 5 Mbps

Mexican operator Unefon has admitted that its so-called “unlimited” data plans have a  speed limit of 5 Mbps, despite the fact that they run over AT&T’s 4G/LTE network. According to a news report, the MVNO acknowledged that speeds would be capped at 5 Mbps for a maximum of 5 GB of data a day, going down to 1 Mbps once that limit is reached. Users complained that Unefon did not publish information on speed limits when it's “unlimited data” plans were launched earlier this year.
 
Under the Unefon Ilimitado (Unlimited) plan, prepaid users topping up MXN 10.00 (US $0.50) and above will have access to unlimited data, minutes and SMS for one day. Users must top up at least MXN 70.00 (US $3.50) every 30 days in order to access the offer.
 
We have reported on many instances in which data plans that were described as “unlimited” by mobile operators have turned out to have hidden limits. Usually what that means is that there are allowances beyond which throttling is imposed. Sometimes it refers to situations in which certain users will be throttled regardless of data thresholds in times and places where there is congestion on the network.
 
In this case, something even less appealing to customers is going on. The service turns out to have an extremely low data speed, far below industry standards, which effectively limits the service even independently of any idea of data thresholds. The fact that there is a threshold, as well—a low one of 5 GB per day, after which the speed is lowered to almost dial-up levels—only adds insult to injury. And the fact that this low speed is being offered over a sophisticated network that is known to boast high speeds makes the negative impact on consumer confidence even bigger.
 
This story is an object lesson for operators in how not to handle network-related matters. Today’s consumers are savvier than ever about data and networks and have expectations that need to be met, regardless of budget. An MVNO cannot hope to keep prices down by compromising on quality to this extent. And perhaps more importantly, honesty and transparency are absolutely essential in this realm. To be caught misleading subscribers and then having to belatedly acknowledge the fact is very harmful to an operator’s brand.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.  

To learn more about Tarifica, please visit www.tarifica.com 

Notable Regional Developments

Asia/Pacific

Australian operator Telstra has signed a network-to-network interconnection (NNI) agreement with Indian operator Tata Communications to use Tata’s 116 points of presence (PoPs), as a way to extend Telstra’s reach into the country’s tier II and tier III (smaller and minor) cities, such as Jaipur, Surat and Trichy. This agreement increases Telstra’s access to more than 2,000 PoPs in 230 countries and territories and positions it as one of the most scalable networks across the globe. The initiative augments Telstra’s strategy to include NNI agreements in emerging countries that are showing signs of growth and an increased demand for connectivity.

Europe

France mobile operator Orange’s Business Services unit is partnering with electric car manufacturer Tesla Motors to provide wireless connectivity to drivers of Tesla’s Model S cars in France. Through Orange’s mobile network and SIM cards, consumers can experience connected-car features such as interactive navigation services, internet radio, web browsing, seamless remote diagnostics and over-the-air updates of M2M software.

Latin America

Argentina’s telecoms ministry SeCom announced that the country’s local operators Claro, Personal and Movistar as well as multimedia company Grupo Uno are prequalified to bid on 4G spectrum in the 31 October auction. The government expects to award 90 MHz of spectrum in both the 700 MHz and the 1,700/2,100 MHz bands.

Middle East/Africa

Vodacom Business, a subsidiary of the Vodacom Group that provides connectivity and telecommunications services to businesses, has introduced cloud solutions to its Nigerian customers. Due to security concerns, only a third of businesses in Nigeria are currently using cloud technology. According to Vodacom, its enterprise-class cloud and hosting solutions provide businesses with a secure and reliable IT infrastructure.

North America

U.S. MVNO Kajeet will provide affordable mobile broadband coverage via Sprint’s network to 2,000 additional U.S. school districts, an increase over the 37 districts that Kajeet originally partnered with in the project. Through this connectivity, students are able to access online textbooks, apps, emails, documents and websites. The schools are also providing students with the Kajeet SmartSpot solution, a portable Mi-Fi mobile hotspot to ensure connectivity for students outside of the classroom.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx