This week saw EE announce its 4G pricing in the UK, starting at £36 per month. Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk takes a closer look at the operator’s pricing strategy, and if it will be enough to tempt mobile users.
At long last the wait is over and consumers can finally enjoy mobile broadband speeds that other countries have been enjoying for some time – but before you jump in make sure you’re aware of the finer points when it comes to 4G:
Data allowance
Data consumption is traditionally more expensive when downloaded using a mobile phone compared with a traditional home broadband connection, and EE’s tariff is no exception. The starting download limit is 500MB with the cheapest package – enough to get you through light emailing and surfing but this will never be a replacement for the much more generous download limits that come with landline broadband packages that allow you to stream and download without worrying about data usage- so don’t ditch the line rental just yet. On the positive side, the data controls designed to alert customers when they are reaching their limit will eliminate the risk of any nasty surprises when it comes to excess data charges.
Pricing
The starting tariff for EE of £36 per month is reasonable as it allows unlimited calls and texts but the data limit is low (just 500MB). Given the much faster speeds 4G can deliver, early adopters of this service will likely want to make the most of its capabilities and may be forced to opt for the pricier packages such as the 8GB data package at £56 per month.
EE’s fibre optic service is competitively priced when compared with other fibre optic deals on the market (although it is not the cheapest – there are deals from £7.25 per month at the moment) and has the appeal of an unlimited data limit.
Tablets
4G will revolutionise the use of tablets, greatly enhancing the experience for users that are on the move. The days of waiting to get home to stream the latest episode of Homeland comfortably through your wi-fi are over. Now that 4G is here, it will be much easier to surf, download and work on your tablet on the move- this could lead to a boost in tablet sales ahead of Christmas (customers will need to check carefully that their tablet is 4G compatible before buying though.)
Competition
EE’s offering is the first of its kind in the UK, but do not forget that other networks will be launching their own 4G services in 2013. Everything Everywhere has an excellent track record for service but more providers competing for your custom means cheaper prices and better terms for you, so it could be worth waiting a little longer before signing up to speeds that are 5 times faster than 3G.
By Dominic Baliszewski
www.broadbandchoices.co.uk
One Comment
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I think it a falicy to believe that as Voda and o2 enter the market on 4G prices will be driven down. Both Voda and O2 will have to recoup not only the costs of the acquisition of the 4G license, but also the significant hardware and infrastructure costs as they rollout – EE already had the backbone on their existing 1800 frequency. O2 and Voda cannot afford to have 4G as a loss leader, and as such I wouldnt expect them to drive a price war on 4G anytime in 2013. If you are waiting, you may have to wait a significant time