UK 4G market hots up with Vodafone and O2 launches
As a result the UK will be the third largest 4G market in Europe by the end of 2014 with nearly 8 million connections, after France and Germany, predicted Analysys Mason.
It is likely that agreesive pricing of 4G services will follow the launch of services by the big two.
According to Analysys Mason, EE, which was the first to launch 4G services in the UK last October, has already altered it pricing plans in response to fourth operator 3’s plans for unlimited data tariffs.
“We expect that the operators will move to shared data plans as well as multi-device plans as the market matures and competition increases,” said the market analyst.
The quality of reception and coverage is likely to remain an issue for 4G services.
According to Analysys Mason’s Connected Consumer Survey 2013, the share of respondents in our survey who plan to change network provider because of network reliability is twice higher for smartphone than non-smartphone users.
“As the first entrant to the 4G market, EE has an early advantage over its competition from a network coverage standpoint. We suspect that as 3, O2 and Vodafone continue to roll-out 4G across the UK, the quality of the network service and coverage will play a more significant role in operator’s marketing strategies and positioning and customers buying decisions,” said Analysys Mason.