Vodafone Spain Introduces All-you-can-eat data

Vodafone Spain has announced a significant reduction on the price of its mobile plans with all-you-can-eat data, one day after Movistar Spain (owned by Telefónica) launched its first unlimited consumer data offers. Movistar reduced the price on its new Contrato Infinito unlimited data plan from €39.95 (US $43.40) a month to €24.95 a month for 12 months, and Vodafone then cut the price of its premium Ilimitada Total plan to €24.95 (US $27.11) a month from the standard price of €49.95 (US $54.27). 

Both plans come with unlimited calls and SMS plus data at the highest possible download speeds, including 5G where available. However, after the 12-month period is over, Vodafone’s plan will cost €49.95 a month, compared to €39.95 for Movistar’s.

Over the past two years, all-you-can-eat data offers for consumers have proliferated in the Spanish market. The first to enter, in 2018, was Yoigo, the country’s fourth-largest MNO, owned by Másmóvil. That was followed by unlimited-data plans from Vodafone Spain (2019) and Orange Spain (2020). Movistar, the first-ranked Spanish operator, introduced an unlimited offer for business customers only, in late January of 2020. Contrato Infinito, the consumer unlimited plan that it launched on 20 April, marks its entry into the field.

Vodafone, Spain’s third-largest operator, has responded with great rapidity to Movistar’s move, countering one day later, on 21 April, with a comparable offer, called Ilimitada Total. The standard price of Contrato Infinito is €49.95 a month, but Movistar is offering a promotional price of €24.95 a month to customers who switch to the operator’s postpaid service from prepaid or port their number from another operator by 30 April.

The counter-offer from Vodafone is certainly competitive in the sense that—at least on paper—it provides the same unlimited data plus unlimited calls and SMS, as well as 5G access wherever available. As a way to keep existing customers in its ecosystem by removing the temptation to migrate to Movistar, it seems like quite a good idea. Of course, undercutting Movistar on price rather than matching its price would be even more effective in attracting new subscribers, and offering some plan features or add-ons that add distinction would also be more powerful and persuasive. Nonetheless, quickly matching a competitor’s offer is a legitimate strategy.

However, the fact that the eventual cost of Vodafone’s plan will be €10.00 a month higher than Movistar’s is a potential concern. The operator can perhaps count on the fact that subscribers will be thinking more about the immediate cost savings than about what will happen in 12 months’ time, but especially now, with the global pandemic going on, consumer spending habits are likely to be more conservative. Ultimately, of course, when it comes to unlimited data offers, much depends on the real-world performance of the networks. 

Tarifica is a global SaaS company and a market leader in the real-time collection, analysis and delivery of telecom plan and pricing data worldwide. Through a mix of AI, modeling and market expertise, Tarifica tracks hundreds of thousands of plan and pricing data points daily. No other company tracks more. Tarifica's mission is to continuously convert data into the dynamic intelligence that fuels opportunities for its clients, the world's leading operators, regulators and consultants. 

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Movistar Mexico Launches American Football App

Movistar Mexico, owned by Spain-based Telefónica, has signed an agreement with the U.S.-based National Football League (NFL) to launch the Movistar NFL MX app. This app gives all the operator’s mobile customers access to all U.S. football games of the upcoming season, as well as other exclusive NFL content. Customers will also be given the opportunity to win tickets for games such as the Los Angeles Rams vs. Kansas City Chiefs, to be held on 19 November in Mexico City’s Estadio Azteca. The app will be available to iOS and Android users at a one-off cost of MXN 99.00 (US $5.13), starting on 17 September.
 
Amid the U.S. government’s increasingly strident stance with regard to Mexican immigration and the concomitant strain in relations, mobile operators are clearly trying to increase and strengthen ties between the two countries. U.S. giant AT&T—after acquiring Nextel Mexico and Iusacell in 2014 and 2015—established a Mexican subsidiary, AT&T Mexico, with a cross-border North American mobile service area in which roaming does not apply.
 
Given the close connections—by culture and population—between the U.S. and Mexico, and given that those have apparently grown to include American football, it makes sense for a the U.S.-Mexican operator to use the time-tested strategy of offering exclusive access to sports content in a way that itself crosses the border. And the NFL itself has taken this approach, having announced plans to hold a small number of regular-season games in Mexico in 2018 through 2021, with the Rams-Chiefs matchup as the inaugural event. Offering Mexican customers of AT&T not only the opportunity to win tickets to that game but also exclusive access via an app with a low one-time fee to televised viewing of all NFL games is an excellent way for the operator to leverage and monetize this current cultural phenomenon.

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 

Telefónica Launches O2 in Spain

Telefónica has introduced its O2 brand in Spain. Targeting the budget market, O2 will feature mobile-only and convergent (fiber plus mobile) offerings. The mobile plan comes with 20 GB of data plus unlimited national calls and SMS for €20.00 (US $23.58) a month, while the convergent offer includes the same mobile service plus symmetric fiber broadband with speed up to 100 Mbps and a landline with unlimited national calls for €45.00 (US $53.06) a month. Customers may also add up to three additional mobile lines with 10 GB of data, unlimited calls and SMS for €15.00 (US $17.69) each.
 
O2 will be activated in “beta mode” in the coming days, ahead of a mass market launch that Telefónica said would take place “after the summer.” Telefónica stated that O2 will be a “premium” service, while its youth-oriented Tuenti brand will be maintained as a low-cost alternative.
 
Telefónica said that because of Spanish regulations from 2016 having to do with competition in the fiber market, these prices will only be applicable in the 66 municipalities that the regulator, CNMC, deemed competitive. In other municipalities, the O2 convergent offer will cost €58.00 (US $68.39) a month, but the operator said it will implement a system to compensate customers for the €13.00 (US $15.33) price difference and adjust the price accordingly whenever the city becomes a competitive area.
 
It appears that in introducing the O2 brand in Spain, Telefónica is aiming at a market sector that is budget-conscious but that nonetheless wants converged offers with fixed line service. The fact that the operator intends to keep its MVNO Tuenti intact indicates that it considers the market for O2 to be a distinct one. Tuenti, which originated as a social-media network, is for the youth demographic in particular and offers the lowest prices. By launching another MVNO under the O2 brand—which already has name recognition from its operations in the U.K. and Germany, Telefónica can capture a new market without compromising either its Tuenti brand or its main brand for MNO service, Movistar. Maintaining O2, which is being characterized as a relatively “premium” service, alongside Tuenti and Movistar enables the operator to slice its market more finely.
 
O2, which boasts low prices but offers landline and fiber internet for the home, will likely be quite appealing to those users who want more than just the least expensive mobile-only option—although O2’s mobile-only offer is competitively priced. Telefónica is the leader in fiber development in Spain (thus the strictures placed on it by the regulator with regard to the 66 municipalities), which is itself the number-one country in Europe for fiber-to-the home penetration. Fiber has proved to be a key differentiator among Spanish operators, and Telefónica’s competitors Vodafone and Orange have had to play catch-up.
 
With O2, Telefónica is mounting a direct challenge to the smallest of Spain’s four operators, MasMóvil, which has been growing its market share very rapidly recently. MasMóvil also offers converged services (fiber and mobile) at low cost and with a very simple pricing structure.

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 

Telefónica Launches O2 in Spain

Telefónica has introduced its O2 brand in Spain. Targeting the budget market, O2 will feature mobile-only and convergent (fiber plus mobile) offerings. The mobile plan comes with 20 GB of data plus unlimited national calls and SMS for €20.00 (US $23.58) a month, while the convergent offer includes the same mobile service plus symmetric fiber broadband with speed up to 100 Mbps and a landline with unlimited national calls for €45.00 (US $53.06) a month. Customers may also add up to three additional mobile lines with 10 GB of data, unlimited calls and SMS for €15.00 (US $17.69) each.
 
O2 will be activated in “beta mode” in the coming days, ahead of a mass market launch that Telefónica said would take place “after the summer.” Telefónica stated that O2 will be a “premium” service, while its youth-oriented Tuenti brand will be maintained as a low-cost alternative.
 
Telefónica said that because of Spanish regulations from 2016 having to do with competition in the fiber market, these prices will only be applicable in the 66 municipalities that the regulator, CNMC, deemed competitive. In other municipalities, the O2 convergent offer will cost €58.00 (US $68.39) a month, but the operator said it will implement a system to compensate customers for the €13.00 (US $15.33) price difference and adjust the price accordingly whenever the city becomes a competitive area.
 
It appears that in introducing the O2 brand in Spain, Telefónica is aiming at a market sector that is budget-conscious but that nonetheless wants converged offers with fixed line service. The fact that the operator intends to keep its MVNO Tuenti intact indicates that it considers the market for O2 to be a distinct one. Tuenti, which originated as a social-media network, is for the youth demographic in particular and offers the lowest prices. By launching another MVNO under the O2 brand—which already has name recognition from its operations in the U.K. and Germany, Telefónica can capture a new market without compromising either its Tuenti brand or its main brand for MNO service, Movistar. Maintaining O2, which is being characterized as a relatively “premium” service, alongside Tuenti and Movistar enables the operator to slice its market more finely.
 
O2, which boasts low prices but offers landline and fiber internet for the home, will likely be quite appealing to those users who want more than just the least expensive mobile-only option—although O2’s mobile-only offer is competitively priced. Telefónica is the leader in fiber development in Spain (thus the strictures placed on it by the regulator with regard to the 66 municipalities), which is itself the number-one country in Europe for fiber-to-the home penetration. Fiber has proved to be a key differentiator among Spanish operators, and Telefónica’s competitors Vodafone and Orange have had to play catch-up.
 
With O2, Telefónica is mounting a direct challenge to the smallest of Spain’s four operators, MasMóvil, which has been growing its market share very rapidly recently. MasMóvil also offers converged services (fiber and mobile) at low cost and with a very simple pricing structure.

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 

Mexican MVNO Simplii Launches Roam Like Home

Mexican operator Simplii has become the first MVNO in the country to offer expanded national roaming and international roaming at no extra cost. The company began operations on Telefónica’s Movistar network seven months ago, promising “more data for less money.” It has now extended its coverage to areas of Mexico outside Movistar’s network, due to the national roaming agreement Telefónica reached with Telcel (America Móvil) in 2016. In a statement, the MVNO also announced that subscribers to its 10 GB and 15 GB packages will be able to roam like home when visiting the U.S., Canada and Puerto Rico.
 
The bundles cost MXN 499.00 (US $26.51) and MXN 749.00 (US $39.80), respectively, and come with unlimited calls and SMS within Mexico as well as zero-rated data for the use of WhatsApp. Calls, SMS and data in North America will also be included in the plans, although calls and SMS from Mexico to international destinations are still subject to extra roaming fees.

Consumer impatience with roaming surcharges is spreading across markets worldwide, inspired, in part, by the recent regulation in the European Union against the fees. Roam like home is becoming an expectation, and even budget MVNOs are getting into the game. Simplii’s bold plan, building on its access to two mobile networks rather than just one, offers national and some international roaming free of surcharges, and with it, the MVNO achieves first-mover advantage in the Mexican market.
 
The surcharge-free calls, SMS and data in North America should be very attractive to Mexican subscribers, considering the frequency of travel between Mexico and the U.S. Canada and Puerto Rico are also included, although that appears to be the extent of the international roaming. Still, for an MVNO it is an innovative and generous offering that should gain the operator significant traction.

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 

Telefónica Deutschland Partners With Huawei for Real-Time Data-Use App

Customers of Telefónica Deutschland will soon be able to view their data consumption in real time thanks to a new partnership between Telefónica and Chinese device manufacturer Huawei. The operator will use Huawei’s newest online charging system (New Generation OCS) to deliver invoices of users’ data consumption and thus meet increasing customer demand for such information.
 
All of Telefónica’s prepaid and postpaid customers will have access to their consumption data in real-time, either via Huawei’s app or a customer portal of the operator’s. Huawei’s New Generation OCS will provide the technical underpinning for these invoices, as well as for future voice and data services.
 
In today’s mobile markets, especially the developed ones such as Germany but not limited to them, consumers are using more and more data. They are also demanding and getting more choice with respect to their data packages, which operators are offering with ever-growing focus and variations.
 
With these two trends in mind, it stands to reason that users want to know the particulars of their data usage as it occurs. While budget-minded users—and indeed pretty much anyone not on a truly “unlimited” plan—would ideally want to have this information, in this era of plan flexibility and design-your-own bundles, real-time information about data use is even more important and desirable. With it, users are able to have the metrics they need to make informed choices not only about their data usage patterns and spending but also about plan choice going forward.
 
The Telefónica–Huawei app will allow customers of the operator to do their own analysis, seeing not only how much data they used and when but also to distinguish between various applications and functionalities on the basis of relative data consumption.
 
We believe that this partnership, while it will not directly drive large amounts of revenue to Telefónica, it's a good idea because of it's positive impact on customer relations and by extension, on customer retention and acquisition. Providing this kind of transparency in real-time format is attractive to many different types of subscribers. It is an excellent idea to make it available to both prepaid and postpaid users. If the app ends up being as easy to use as promised, it will give a big boost to customer satisfaction and confidence in the operator.

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 

Telefónica Mexico Chooses Tutela for Mobile Network Analysis

Canadian mobile analytics company Tutela Technologies has announced an agreement to help Telefónica Mexico improve its network quality. The partnership will give Telefónica Mexico access to quality crowd-sourced network data from over 150,000 Mexican mobile phone users, including details of signal strength and quality, device usage and download speed patterns.
 
The insights will enable the operator to analyze the experience of its own and rival networks, identify opportunities for improvement and troubleshoot performance problems as they arise, according to Tutela, which said that it collects over 10 billion mobile quality data points every day globally, with over 100 million data points per day in Mexico alone.
 
Spain-based multinational Telefónica, operating in Mexico under the Movistar brand, has experienced a difficult time in Mexico since entering the market over a decade and a half ago. While Movistar is number two in the market in terms of subscribers, it lags far behind the leader, América Móvil -owned Telcel, with 25 million subscribers to Telcel’s 75 million as of the first quarter of 2017. Furthermore, Movistar is facing a major challenge from new entrant AT&T, which has over 12 million subscribers and is growing fast. Telcel has also become a more aggressive competitor lately, ever since national regulators imposed measures to reduce its market dominance. As for Movistar, it has seen revenues drop more than 16 percent year-over-year, with subscriber numbers flat.
 
In Open Signal’s March 2017 tests of Mexican mobile networks, Movistar came in last of the top three operators, with Telcel leading in 4G/LTE and AT&T taking the lead for combined 3G and 4G quality. Movistar won in no categories. With these facts in mind, it seems that boosting network quality would be a very good strategic move for Movistar.
 
By partnering with Tutela, Telefónica Mexico will be engaging the services of a well-reputed firm with the ability to garner the high-quality, meaningful data that the operator will need in order to chart a course forward for its network. Granular data that pinpoints exactly where and how the network is not delivering what customers want will be essential, and comparative data about rival operators’ networks will likewise be indispensible.
 
While rumors have gone around in the media to the effect that Telefónica has been considering exiting the Mexican market in the wake of AT&T’s advent, the effort to seriously address its network concerns is an indicator that, at least for now, Telefónica is staying put.


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 

Telefónica Launches Tuenti MVNO in Guatemala

Spain-based multinational operator Telefónica has announced the debut of its prepaid, youth-focused Tuenti MVNO in Guatemala, which it says will feature flexibility and transparency. The available voice-and-data bundles range from 1.5 GB of data and 75 minutes of calls for GTQ 50.00 (US $6.50) to 3 GB and 100 minutes for GTQ 75.00 (US $10.00) and 5 GB and 125 minutes for GTQ 100.00 (US $13.50). The plans also include unlimited access to WhatsApp, unlimited calls to other Tuenti subscribers and 25 minutes of VoIP calls through the Tuenti app.

Guatemala is the fifth Latin American market in which the Tuenti MVNO brand has been launched; first Mexico in 2014, then Argentina, Peru and Ecuador. The Mexican experiment did not go very well, and Telefónica discontinued Tuenti in that country, but that does not appear to be an indicator that this type of service is, generally speaking, a weak competitor. Most likely, the budget MVNO faced too much competition in Mexico, while in the other markets it is able to garner more market share.

As we have written in the past, the youth market is a fast-growing and potentially very lucrative one for mobile operators. Young people, while budget-minded by necessity, are strongly inclined to use large amounts of mobile data, and they are at an age when consumption habits and brand loyalties are being formed. Therefore, generous and low-priced offerings of data on a prepaid, low-commitment basis are the right way to get and keep these valuable customers.

Tuenti’s Guatemala service fits the bill in terms of price as well as data allowances—which, though not princely, they are adequately generous and appropriate for streaming entertainment content. The zero-rating of WhatsApp recognizes the fact that youth tend to rely heavily on OTT messaging.

While Tuenti does not offer specifically youth oriented entertainment content, it does offer calls to other Tuenti users, which is at least a nod to the particularly social nature of its target demographic.

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 

Orange Spain Poised to Enter Home Security Market

Orange Spain is teaming up with specialist manufacturer Tyco to launch a home security service with 24-hour monitoring and emergency response for €29.95 (US $32.82) a month plus a €99.00 (US $108.47) one-time installation fee, according to a report. The service, which becomes available on 24 May, can be set up with a smartphone app and comes with sensor-controlled wireless video surveillance equipment that continues working even during a power outage. Only eight percent of Orange customers currently have a security system in their home, the company says, adding that it will be the first unit in the Orange group to launch such a system.
 
The launch of Orange’s home security service comes nearly two years after Telefónica joined forces with IoT network company Sigfox, insurer Securitas Direct and home alarm provider Verisure to launch a similar service in Spain for Movistar users.
 
Home security systems enabled by the internet are increasingly popular across a broad swath of markets, and mobile operators have made various kinds of efforts to profit from the trend.
 
The most basic, least risky approach is simply to derive revenue from the connectivity needed to run the systems. While this is all upside, there is not a great deal of revenue to earn, because most of the time, security systems do not consume a great deal of data. A more aggressive tactic is to co-brand with existing security systems currently on the market, offer special deals to subscribers that incentivize them to sign up for the service.
 
Orange Spain is going one step further by taking a “soup-to-nuts” approach and creating its own security system, available exclusively to Orange subscribers. Given that only 8 percent of those subscribers now have a home security system, the field is wide open for Orange, and the pre-existing customer base is relatively easy to pitch to. Buying such a service from an already-trusted provider, for many people, is preferable to initiating a relationship with a new company. The exclusivity is likely to make the offer more palatable, and if the price point is right, we imagine that Orange could do quite well with it. The operator is, of course, late to the game, two years behind competitor Movistar. However, the market may be more mature now than it was then.

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 

Telefónica, Telesites Said to Be Negotiating Mexico Tower Deal

Telefónica—operating in Mexico as Movistar—is discussing the possibility of renting mobile phone towers from Telesites, the recently spun-off towers business of América Móvil, according to unnamed sources cited by Bloomberg. Its aim in doing so would be to gain access to Mexico’s most widespread network of around 10,800 towers, enabling it to offer faster services and lowering the costs of improving coverage, according to the sources. Telefónica’s chief operating officer, Jose Maria Alvarez-Pallete, recently said the company was prepared to reach network sharing deals with rivals such as AT&T (which owns Iusacell and Nextel) and América Móvil in order to boost its performance in Mexico. Last year, América Móvil, having been declared “dominant” by the Mexican regulator, agreed to sell off assets in order to bring its share of the mobile market under 50 percent. Spinning off its tower business into a new entity, Telesites, will not in and of itself accomplish the goal of reducing dominance. In April, CEO Daniel Hajj said, “We are interested in divesting and reducing our market share but we do not know exactly how we want to do it.” In the meantime, renting out some of its very substantial infrastructure is a way for América Móvil to drive revenue while waiting to see how the rapidly changing Mexican market will shake out. As for Telefónica, Alvarez-Pallete said last week, “We can’t intend to grow in Mexico without having a good network and we are light-years away from it. So, what has to be expected from us in Mexico is strong investments, and potentially agreements to access towers or for combined creation of infrastructure.” Sharing of network resources among rival operators has often been shown to be a win-win situation, and in the Mexican market, where there is a great to need to improve coverage over vast areas, sharing is particularly desirable. AT&T, in its quest to become the first cross-border service provider in North America, is also reportedly working on an agreement to rent towers from Telesites.

Tarifica has been the leading provider of telecom pricing information for close to four decades. It maintains the most robust, in-depth and up-to-date pricing database in the industry, which includes mobile and fixed line rates from over 400 operators in 85 countries, as well as historical data going back to 1997. Tarifica also produces reports, surveys, publications and custom analyses.Its clients include carriers, regulators, enterprises and consultants in every region of the globe.For more information, please visit www.tarifica.com. Tarifica also maintains a presence on the following social media platforms: