Following today's announcement that EE is to double the speed of its 4G network, Emeka Obiodu, principal analyst at Ovum, observed: "The updates EE has announced for its LTE service offering in the UK are clearly aimed at giving it a competitive edge as other players launch LTE later this year. EE's choice of a summer promotion to push these initiatives attests to this."
"Fleshing out its shared plans for customers, and positioning it as a way for families to save money, is a canny move in today's austerity-dominated society. The ability to cap costs should appeal to families who will get better clarity on what their telecoms spend will be. We also liked how EE is going to use the shared plans as a nudge to push customers into a higher-prized plan. This is what Verizon Wireless has done successfully in the US and is one reason why their ARPU is rising."
For EE, offering pay as you go LTE is a tactic to corner the market for sporadic users of mobile broadband, noted Obiodu, adding: "It is safe to assume that other telcos will want to lock customers into some sort of contract and so EE could tap this opportunity for a while.
"The doubling of LTE speeds in several cities across the UK is a nice headline. But, on its own, we don't believe it is a standout game changer as telcos struggle to sell LTE as a speedier network.
"Instead, its merit is that it gives EE a base from which to offer LTE packages tiered on speed and usage which are far acceptable to customers. That is going to be the interesting thing to watch out for and if its rivals do not have the capability to do that, EE could have quite a solid marketing message."