EE Drops Prices to Extend LTE Customer Lead

EE, the first mobile service provider to sell Long Term Evolution in the U.K. market, is adding new affordable 4G plans to build on the lead it has before its other competitors are able to gain more traction with their 4G networks, which will launch in early 2014.

EE knows it will face price competition. Three, which plans a December 2013 launch, says it will offer 4G at no extra cost, over its standard 3G prices.

Still, as did AT&T when it had the Apple iPhone exclusive, EE wants to build as a big a subscriber lead as possible before it faces full-blown competition from the other competitors.

EE has gained a million LTE subscribers, a result of authorization by Ofcom, the U.K. regulator, to deploy 4G in existing spectrum. But EE wants to extend its subscriber lead while it still remains the only service provider able to sell Long Term Evolution.

The new plans and offers aim to attract light users, heavy users, shared data plan customers and mobile workers.

Among the moves aimed at lighter users, EE will offer 4G access to the 40 percent of mobile users who are prepaid customers.

All 4GEE handsets currently available to pay monthly customers will be available on pay as you go, EE says.

A range of 30 day bundles (from 100MB to 10GB), and text and call options will be available as well. In addition, customers who buy a data bundle greater than 2GB will have access to EE’s fastest 4G speeds, standard.

EE also is offering 24-month installment purchase plans for a range of entry-level 4G devices.

Also, a new bundle of fixed network and mobile broadband access, with mobile data allowances increased to 10GB each month for no extra charge will be offered when they sign up to EE’s unlimited home broadband service.

Two new service plans aimed at heavier users also are being introduced. For about $26 per month, customers will be able to buy a 20GB mobile data bundle, while for $36 per month they will have access to a 50GB mobile data bundle.

In some cases, a service provider effectively reducing prices would be a sign that LTE demand is less robust than some would have hoped. In this case, EE is trying to exploit a marketplace lead it has, by virtue of offering the only Long Term Evolution service on the market.

The perhaps troublesome news is that LTE will not be sold at a premium over 3G prices for much longer.