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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