That limit is "fair use" too, rather than capped - exceed it a few times and you'll get a warning, take the piss and they'll ask you to move onto a more expensive tariff.This is huge news. 500 MB is a monthly limit that includes everything you do on a mobile phone, probably excluding videos. My average usage of the iPhone is about 200MB/month. But I do not do any YouTube videos over EDGE (it is so slow to be useless). I do lots of email, attachments, browsing, weather and maps. 500 MB is more than enough for me.
Free mobile data is the tipping point for Mobile 2.0. Once we get that, the ball will start rolling and it will be unstoppable. It is big news for any startup out there thinking about a mobile application around the carrier. Kudos to Vodafone to admit being a pipe is not that bad.