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4G deal is ‘a game changer for consumers’

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
20/02/2013

The outcome of Ofcom’s 4G auction has been hailed as a ‘game changer’ for consumers.

Four mobile operators have won the right to operate faster 4G networks – Hutchison 3G UK; a BT subsidiary, Niche Spectrum Ventures; Telefonica O2; and Vodafone.

Existing 4G operator Everything Everywhere (EE) was also given expanded bandwidth, which means it has more capacity for faster service.

Ernest Doku, telecoms expert at uSwitch.com, said: “The results of the 4G auction are a game changer for the mobile industry and consumers alike.

“The fact that consumers can expect the other mobile networks to bring out a 4G service within six months is great news. Allocations and service obligations for all of the major providers should also lead to more competition on pricing and quality of service – great news for those worried about the extra cost of enjoying superfast internet on their phones, or the coverage in their area.

“EE, who have been the sole provider of 4G since October, have been in the unenviable position of setting their prices in a vacuum – it will be interesting to see their reaction to competition entering the LTE market.

“Consumers will be hoping for a race to the bottom on pricing – especially following Three’s pledge to not charge a premium for 4G – but factoring in the cost of a new superfast handset should be considered when making the leap to 4G.”

The disappointing 4G auction raised £2.34bn, far less than the £22bn raised from the 3G auction in 2000, and a third less than the Treasury was counting on to keep borrowing in check.

Doku said: “While George Osborne won’t be too impressed with the amount raised by the auction, it has clearly been expensive for some providers. What is important is that this extra expense isn’t passed onto customers – especially in the form of tariff price rises.

“While some providers claim not to be imposing a premium for 4G, it’s vital that prices remain affordable for those unwilling – or unable – to make the big switch.”

Despite today’s news, research reveals mobile broadband users are not fussed about the speed advantages of 4G.

According to a YouGov poll, commissioned by Virgin Media Business last month, only 10% of UK consumers would think about switching mobile provider to join the 4G revolution.

Cost is the most important factor when choosing a network, according to 61% of respondents, while 34% were more concerned with always being able to get a signal.

A staggering 71% of people had no idea how fast their mobile broadband should be, let alone what speeds they could get by switching to 4G.