Let’s talk about WhatsApp. The popular over-the-top (OTT) messaging service — acquired by Facebook for $19 billion — has taken the next step by launching as a mobile carrier service.
Beginning in Germany with carrier E-Plus, WhatsApp’s new MVNO offers a prepaid SIM priced at 10 euros. The SIM comes preloaded with 10 euros of credit and includes unlimited access to WhatsApp without using the included data allowance.
WhatsApp’s CEO, Jan Koum, first spoke about the company’s carrier plans at Mobile World Congress in February. Less than two months later, the service is live. Whether Facebook’s acquisition accelerated the timeline is unclear.
Germany is a particularly important market for WhatsApp, with the app installed on around 90% of all smartphones.
That translates to a potential user base of more than 30 million people who can access this new plan. Outside of unlimited WhatsApp messaging, the standard charges on the plan are:
- One minute of calling: 0.09 euros
- One text message (SMS): 0.09 euros
- One megabyte (MB) of mobile data: 0.24 euros
For heavier users, there’s an add-on called “WhatsAll” for 10 euros that lasts 30 days. It grants 600 units, where each unit equates to one SMS, one minute of calling, or one MB of data. As is common with some German mobile plans, if a customer exhausts their data allowance they can continue using data at a reduced speed of 56 Kbps rather than losing connectivity entirely.
It remains uncertain whether the voice-calling feature WhatsApp planned to introduce would be included within this unlimited messaging offer. Including free VoIP calling could significantly reduce E-Plus’s traditional voice and SMS revenue, since WhatsApp already reaches the vast majority of German smartphone users.
Roaming options are offered for many destinations. For a one-off fee of 4.99 euros customers can get a 7-day bundle that includes either 50 MB of data or 50 minutes of calls. To help subscribers manage their plan, dedicated companion apps for the service are available for iOS and Android.
WhatsApp’s move into the carrier space highlights an evolving relationship between traditional network operators and OTT services. By bundling unlimited access to a dominant messaging app with a prepaid SIM, the service appeals to heavy messaging users and those seeking a straightforward, low-entry-cost mobile option. At the same time, it raises questions about how operators can monetize voice and SMS when popular apps offer free or low-cost alternatives.
For carriers, partnering with OTT providers can be a way to differentiate offerings, attract targeted customer segments, and retain relevance in an era of app-driven communication. Successful partnerships will likely balance user demand for affordable, app-centric plans with operators’ need to protect revenue streams and network investments.
How should carriers best partner with OTT services? Let us know in the comments.