Monday, September 3, 2012

DT to Offer Zero-Rate Video Calls, Messaging, File sharing and Music Services

Does Deutsche Telekom execute its "two-sided business model" - in which an OTT service provider pays for QoS (here and here)? Will Net Neutrality still be relevant when the EU will complete all its studies and consultations?

The German carrier does not wait and announced recently (during IFA 2012, Berlin) two new services for its local subscribers:
  • joyn - "Service available to Telekom customers from December, Chat and send files free of charge on all smartphone tariffs, Integrated in many smartphones in the future and available immediately as a free app for iOS and Android .. The Chat and Send File functions are free of charge for Deutsche Telekom customers who already have a calling plan that includes a data or text message flat rate. In contrast to other messenger services, the volume of data used is not deducted from the volume included in the flat rate".
  • Spotify - "As of October 2012, customers will be able to listen to more than 18 million music titles via their mobile phone, tablet and PC - both online offline. What's more, the online usage of the Spotify streaming service will not have any impact on the data volume specified in the respective Deutsche Telekom tariff". 
Niek Jan van Damme (DT), Gerrit Meier (Spotify) and
Dr. Ingo Hofacker (DT) during the joint press conference at IFA 

See "Deutsche Telekom launches joyn communication service" - here and "Here's the music: Deutsche Telekom offers unlimited music streaming with Spotify" - here.


  1. Hi Azi

    I think there's quite a big difference between zero-rated mobile data (where nobody pays), and two-sided models such as 1-800 style, where the content/app company pays for transport.

    In DT's case, it looks like it is simply zero-rating services that it retails itself. This is already common with in-house VoIP and IPTV provided on fixed broadband, and also with close-partnered apps such as BlackBerry BES on mobile.

    Joyn is just another in-house service similar to MMS, where data traffic can easily be separated out from the *Internet Access* quota as it originates on in-house servers rather than transits the public Internet.

    The Spotify example is interesting, but more like BlackBerry - the operator presumably gets a good wholesale price from the content provider, and then includes it in the retail bundles for its subscribers.

    Neither of these examples is a two-sided model - especially as it is likely that DT is paying Spotify, not vice versa. (Similar to a cable company paying Disney or ESPN).

    Dean Bubley

  2. why DT need pay to spotify? if DT paying . it is like spotify doing two side business model