Zero-Rated Data Lives On: The Mobile Pricing Strategy Thriving in Latin America
by Soichi Nakajima
In much of the Western world—namely Europe, the United States, and Canada—zero-rating practices have been largely phased out due to net neutrality regulations. But in Latin America, zero-rated mobile applications remain a powerful and widespread strategy for mobile operators.
Based on data from Tarifica’s Telecom Pricing Intelligence Platform (TPIP), this analysis explores how zero-rated apps—especially WhatsApp—play a central role in mobile plan design across the region. It also highlights wide disparities in pricing strategies among countries.
What is Zero-Rating?
Zero-rating allows mobile users to access specific apps or services (e.g., Facebook, WhatsApp, Spotify) without having that usage count towards their standard monthly data allowance. For example, a plan may include 5GB of “standard” data, plus an extra 2GB of data which can be used specifically for WhatsApp. That 2GB is considered zero-rated and doesn’t impact the main data allowance.
Such offers did at one point exist in the U.S., Canada, and Europe. However, regulatory measures, particularly net neutrality rules requiring all applications to be treated equally, have effectively eliminated zero-rating in those markets (a story for another day). In contrast, data from TPIP demonstrates that operators in Latin America continue to rely heavily on this approach.
How Widespread is Zero-Rating?
According to TPIP, out of 1,997 plans covered in the 17 nations from Latin America examined for this study, 1,331 (67%) include some form of zero-rated data. WhatsApp by far is the most popular zero-rated app, with 1,224 plans (92%) including it. Furthermore, 91% of those plans (1,107) offer unlimited WhatsApp usage. In total, over half ( 55%) of all plans in the region offer unlimited WhatsApp.
Other frequently zero-rated apps include Facebook, which is included in 49% of plans, Instagram at 39% and X (formerly Twitter) at 33%. Video and navigation apps also make an appearance, with zero-rated YouTube included in 16% of plans (311) and zero-rated Waze in another 16% (318). This pattern suggests a strong focus on social, messaging, and navigation services—likely reflecting usage habits across the region.
Pricing Spotlight: Unlimited WhatsApp
Using TPIP, we looked at the lowest cost postpaid plan offering unlimited WhatsApp in each country. The results are visible in the graph below:
Monthly prices, adjusted for PPP (purchasing power parity), range from around USD $10 to $60. In countries like Honduras and Nicaragua, users pay roughly six times more than those in Peru, Brazil, or Uruguay to access unlimited WhatsApp.
Notably, Belize and Panama do not offer postpaid plans with unlimited WhatsApp at all, and Argentina was excluded from the analysis due to ongoing economic volatility. These wide discrepancies point to significantly different pricing strategies and consumer expectations across markets.
Comparison with Unlimited Data
Of course, unlimited WhatsApp alone does not necessarily give the full picture. To add context, we also looked at the lowest-cost postpaid plans offering unlimited data, that is, not just zero-rated apps but full, unrestricted usage. The following graph puts the price for unlimited WhatsApp side by side with the price for unlimited data overall for each country that offers both.
When comparing unlimited WhatsApp against unlimited any data, we can see a few interesting insights.
Firstly, Brazil, Uruguay, the Dominican Republic, Paraguay and Nicaragua do not offer unlimited data plans at all. The absence of unlimited plans in these countries suggests that operators may be using zero-rated app bundles (like unlimited WhatsApp or social media) as a more controlled, cost-effective way to meet consumer demand for connectivity—without opening the door to high network loads or reduced ARPU that can come with truly unlimited usage.
Among the countries that do offer both unlimited WhatsApp and unlimited data, most unlimited data plans are priced around $50 per month, adjusted for PPP. The pricing gaps between unlimited WhatsApp and unlimited data vary significantly across countries. While Peru offers the least expensive unlimited WhatsApp, moving to a fully unlimited data plan costs about four times more. In contrast, El Salvador shows only a small difference between the two, indicating a more inclusive pricing strategy. Guatemala and Honduras stand out as expensive markets across the board, with no meaningful cost advantage for either unlimited WhatsApp or unlimited data plans.
None of the countries studied can claim to offer inexpensive plan options for both unlimited WhatsApp and unlimited data. These differences underscore how some operators use zero-rating as an aggressive pricing tool, while others compete on broader data access.
Conclusion
A little dive into TPIP data reveals that mobile offerings in Latin America remains distinct from more developed markets due to the former’s continued use of zero-rated applications. Perhaps unsurprisingly, WhatsApp is the most popular zero-rated application, likely because it is often preferred over standard voice calls and SMS messaging in personal and business communication.
However, pricing strategies vary depending on the country. Some countries offer unlimited WhatsApp data at minimal cost, while others impose a steeper premium. Depending on the user profile, the least expensive option can look very different. The same applies to unlimited data. Depending on the user profile—whether WhatsApp-centric or app-agnostic—the best-value plan can differ dramatically. For example, WhatsApp-centric users might find Peru to be the least expensive country, while those requiring heavy use of various applications may prefer the pricing in Chile. And those in Guatemala and Honduras may be throwing envious glances to their neighbours, regardless of the profile.
As this analysis shows, surface-level comparisons often miss these deeper nuances. Tarifica and TPIP can provide the view beneath the surface necessary to understand regional pricing tactics and identify opportunities across markets in a transparent, data-driven way.
About the Author:
Soichi Nakajima
VP Data and Analysis
[email protected]
With over 20 years of telecommunication market analysis experience, Soichi oversees the data collection, quality, research, analysis, and production of all data projects and quantitative studies.
For questions or comments about this analysis, please contact Penny Wiesman at [email protected]