EEs 4G Launch – What Now?

After numerous months of upsets, delays and controversies, the UK finally has a live 4G network. While we continue to wait on the Ofcom-led auction for 800MHz spectrum, EE – then Everything Everywhere, parent company of Orange and T-Mobile – took the initiative and repurposed its 1800MHz spectrum, launching a new EE-branded operator in the process.

This morning the network went live, and its been all over the mainstream media – and now we get to see how the public reacts.

Money talks

The first obvious question is one of cost. With EE 4G-compatible contracts starting at £36 per month, with a fairly miserly data limit, and stretching all the way to £56 – both without any handset included – its not hard to imagine consumers turning down a service with fairly intangible benefits.

And according to research from Thinkbroadband, thats exactly whats happening. 70 per cent of respondents said EEs pricing would put them off upgrading, and only 12 per cent said they were happy to pay the price for faster speeds.

EE itself is, unsurprisingly, rather more optimistic. A study released today to mark the launch revealed that 74 per cent of UK businesses intend to adopt 4G within the next 12 months, citing increased productivity (58 per cent) and employee well-being and motivation (38 per cent).

Bumps in the road

Those consumers – and businesses – who have taken the leap and upgraded havent yet had time to feed back about their experiences on the 4G network. But RootMetrics CEO and president Bill Moore warns that, based on previous experience, they might not be in for the smoothest ride in terms of coverage.

“Our experience in the US has shown that new 4G networks have not been consistently available to the consumers who have subscribed to them,” Moore says. “In the US, networks left as much as 40 per cent of a city uncovered on launch. If this pattern repeats in the UK, people should understand what theyre potentially going to get on sign-up, versus how much 4G coverage may be available down the road.”

Likewise, Thinkbroadband editor Andrew Ferguson points out that the speeds 4G subscribers actually get might be a disappointment. “EE has been brutally honest about the potential speeds on its 4G service, with speeds of up to 12 Mbps being discussed,” says Ferguson. “However, when people are already able to use HSPA+ on the 3G networks, which supports a theoretical 42 Mbps, there will be lots of people deciding to stay on the older services but buy a HSPA+ compatible handset, such as an iPhone 5 and the new Nexus 4.”

Finally, theres the question of the 1800MHz frequency itself which, compared to the 800MHz spectrum up for grabs in Ofcoms 4G auction, is apparently vulnerable to signal degradation inside buildings. On the flip side, it doesnt share the risk of disrupting the nations TVs, as 800MHz does – but the bigger issue is surely one of fragmentation, in an industry thats already split down the middle in a dozen other ways.

4G nation

Thats hardly looking on the bright side, though, and the fact remains that the UK is finally a 4G-enabled nation, long before the Ofcom auction has materialised. If nothing else, EEs action has spurred other operators to pull together to speed along the auction and further 4G deployment, in order to diminish EEs first mover advantage.

Steve Hurn, CEO of social commerce solutions provider Reevoo, reckons the launch is great news for the retail industry.

“The brand experience that retailers are able to deliver on mobile, over the mobile web or dedicated apps, is improving all the time,” says Hurn. “4G is a positive development for both retailers and consumers, opening new possibilities for social commerce activities too, as it will continue to facilitate the multi-channel experience, driving cross-channel sales by providing an ever-more rich and sophisticated experience for mobile and tablet shoppers.”

Meet EE

Finally, its possible that were all missing the most important part of todays launch. After all, it wasnt just 4G that was introduced to the UK today – it was a new operator, which will be displacing the high street presence of Orange and T-Mobile nationwide.

“EE took the opportunity to relaunch its brand, focusing the attention of the media and analyst community around super-fast broadband and related services,” says Frost & Sullivan industry manager Saverio Romeo. “The launch was not just about LTE, but about fibre broadband and smart new services such as EE Film. The message was loud and clear: ‘We want to be the provider of 21st century digital communications and services’. And for EE, the building blocks of that future consist of LTE and fibre communications.”