4G tariffs announced by EE

photo credit: Micky.! via photopin cc

EE, the company behind the Orange and T-Mobile brands in the UK, will launch their 4G network at the end of October 2012 and today announced their 4G tariffs. EE will be the only network operator that has a licence to run a 4G network in the UK until 2013 so at the moment only Orange and T-Mobile customers will be able to use 4G.

You will obviously need a 4G capable handset such as an iPhone 5.

The normal pricing strategy for new technology is to price high at launch and reduce the price as the technology and the market matures. However, EE wants to take advantage of the lack of 4G competition and win high spending contract customers from the other operators with competitive pricing for high usage customers. 4G launch tariffs are therefore competitive. The following table shows the new 4G bundles compared to Orange’s Panther bundles using 3G data.

The two cheaper bundles advantage is unlimited voice calls. However, customers buying 4G will be buying it because it offers fast data. Since 4G data speeds are faster, it is likely that users will use more data than on a 3G network.

• The £36 bundles limit of 0.5GB will almost certainly to be too low for 4G customers.
• The £41 4G bundle has exactly the same data limit as the non-4G bundle which, since fast 4G data, encourages more data usage is unlikely to be enough data for a 4G customer.

The two more expensive 4G bundles offer significantly more data than the equivalent Panther bundle and offer unlimited voice calls. These two bundles are, therefore, likely to be the biggest selling bundles.

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