Zeronet is no-contract, so you can taste-test it for a month if you’re dubious that “up to” 3Mbps is workable.

You can transfer your existing number or adopt Zeronet’s 020 prefix.

Netflix says 3Mbp is okay for standard high definition, while 5Mpbs or higher is required for full high definition and 15Mbps or higher for 4K or ultra high definition (not that anyone can tell the difference between high definition and 4K on a phone screen).

Pre-pandemic, the big three mobile players went through a phase of pushing “unlimited data” plans.

The Commerce Commission argued they weren’t really endless data because, once you reached a certain data usage threshold (which varied by plan), or an ill-defined “fair use” cap, your mobile connection was throttled back to a sluggish speed, around 1.5Mbps – for the rest of the month. The regulator also said the telcos had to be more up-front about the qualifications. The plans were re-framed as “endless data”.

“The Commission’s concerns were primarily with telcos advertising ‘unlimited’ plans while imposing hidden speed throttles after a set full-speed data limit, creating a ‘bait-and-switch’ experience. Zeronet avoids this entirely by offering speed-based plans upfront and centre, a concept familiar to customers from broadband,” Zeronet general manager Nicholas Keegan said.

“Zeronet takes a more straightforward and transparent approach. We let customers choose the speed that suits them —just like they would with a broadband plan. No mid-month speed reductions, hidden data caps, or bill shocks. Plus, we don’t charge extra for essentials like voicemail, picture messaging, or 13-month billing tricks used by all big telcos.

“We believe our Mobile Starter plan, which runs at [up to] 3 Mbps upload and download, is infinitely more usable than the big telcos throttling customers down to 1 Mbps. Through extensive testing, we’ve found that 3 Mbps allows apps to run smoothly and as expected.”

The mobile newcomer says it is “striving” for carbon neutrality. It pledges to plant five trees for every new customer.

New venture, familiar names

Although Zeronet Mobile is newly-minted brand, Zeronet has been offering broadband for years. The firm was founded in 1999 by Compass Communications director Karim Hussona and David Carter (both still on the company’s board today, with Hussona still the largest shareholder). Zeronet originally traded as Freenet – and for a spell around the Millennium, it made headlines, along with i4free, for exploiting a payments quirk of interconnection agreements with Telecom to offer its customers free internet.

The ties between the companies remain tight. Keegan was general manager of Compass for four years before becoming Zeronet’s GM.

Now 10 virtual mobile players – holding a fraction of the market

Zeronet is an example of what the industry calls a virtual mobile network operator or MVNO. That is, a mobile phone company that lacks its own celltower network or radio frequency, instead piggybacking on Spark, One NZ or 2degrees’ infrastructure. In Zeronet’s case, it has a wholesale deal with 2degrees.

Our MVNO market has been historically weak compared to many countries, according to the Commerce Commission

In fact, the regulators 2022 Telecommunications Monitoring Report noted that the MVNOs’ collective share of the market had actually fallen from 1.8% to 1.3% that year as 2degrees merged operations with Vocus NZ, owner of Orcon and Slingshot – whose respective virtual mobile services were folded into 2degrees.

The ComCom’s latest monitoring report, released in August last year, said the MVNO market was expanding again, albeit off a small base, and was now at 1.6% – with nine virtual mobile players, a figure that grows to 10 with the advent of Zeronet mobile.

The regulator said MVNOs had previously struggled to offer cheaper plans than Spark, One NZ or 2degrees – but that some were no able to. It noted that three MVNOs – or now four, with Zeronet – were offering plans based on speed tiers rather than data caps.

The ComCom said MVNOs were now also able to add more features. Zeronet, like many of its rivals, offers hotspotting (sharing a mobile connection with another device, like a laptop) and e-sim support, for example.

But it also noted that MVNOs often lack a fixed-wireless plan (essentially replacing landline broadband for a home or small business). Keegan said Zeronet is not offering fixed-wireless at launch “but it’s something the business is exploring for the future”.

MVNOs can also miss out on the latest frills. For example, One NZ is not extending its new Starlink-based Satellite TXT service to its three MVNO partners.

The competition

Rival Rocket offers unlimited mobile data and unlimited text and calling within Australia and NZ for $30 per month as well, but with a 2Mbps speed limit.

Mighty Ape Mobile offers the same but with the speed limit lifted to 10Mbps for $40 per month.

Zeronet touts itself as $10 a month cheaper than Spark’s Skinny Mobile, which offers an endless data plan for $40 over four weeks, but if you’re willing to accept a data cap (and at 3Mbps, you won’t be chugging a lot), Skinny has plans at price points including $8 and $17 per month.

Similarly, One NZ and 2degrees for low data users, while Spark has a 1.5GB rollover data pack for $21.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.