Everything Everywhere (EE) shakes things up!
4G/LTE in the UK – the race is on
This week we saw Everything Everywhere (EE) aggressively slash its 4G/ LTE retail prices the day before its rivals made their first bids in the UK 4G/LTE spectrum auction.
Is this an attempt to potentially spoil the plans of its rivals, as some analysts have stated; “EE’s decision to offer both a relatively lower-priced tariff at the entry level and a plan with more data at the top end is clearly in response to customer feedback,” Ovum analyst Matthew Howett wrote in a research note. “More importantly though, it is a pre-emptive strike aimed at its competitors who are soon to launch tariffs of their own once the long-overdue auction of LTE licences is completed” (1).
There is no doubt that EE’s prices changes are a preview of the battle that is set to ensue and the intense competition that is going to take place once EE’s rivals have acquired 4G/LTE licences and rapidly start deploying their high-speed networks in summer 2013. Clearly, new operators will have to adopt aggressive approaches to pricing when they launch their 4G/LTE services.
4G/LTE in the UK – will price alone be the key to success ?
Clearly, pricing will be a key factor in gaining competitive advantage in the UK 4G/LTE marketplace, but more importantly some analysts believe offering innovative services, rather than simply focusing on price and speed alone, will allow operators to move ahead of rivals; Ovum analyst Matthew Howett said of EE’s price reductions; ” EE’s failure to focus on innovative services rather than simply speed could allow new players to quickly close the gap. In my view, EE should focus its marketing more on services such as Clone Phone, EE Film or the free access to BT Wi-fi offered as part of its tariffs” (2).
Watch this space for what happens next in the UK 4G/LTE marketplace………..
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2 Responses to “Everything Everywhere (EE) shakes things up!”
Europe has always been a little behind regarding new technology and obviously 4G LTE also. I write from Italy and we actually do not have much choice here for 4G devices. The other day I was in a shop and noticed they had just the latest iPhone available with 4G Technology. They are doing very well in the UK. I read somewhere that they started implementing LTE technology around October 2012, which is pretty good. I think, although the extreme competition EE will face, they will be all right on the market.
As far as I understand demand is very high, people love the idea of the new 4G network because they can watch more YouTube, play games online, perhaps stream a movie eve4ry now and then and so on and so forth.
Hi Davide
Thanks for you interesting comments. It\’s an exciting time for 4G/LTE in the UK. I think you are right in that EE will face extreme competition, but they will be able to compete effectively. The UK consumer is really looking forward to the extended capabilities of 4G when it will be widely available later this year.