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Kate O'Flaherty

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O2 must raise the bar to compete in the 4G market

By kateoflaherty, Aug 1 2013 09:10AM

Nearly a year after EE's launch of 4G in the UK, O2's move to offer the technology at the end of August is a welcome addition.


But O2 will need to raise the bar substantially if it is to lead in the LTE space. The operator's 4G announcement has been much more low-key than its rival EE, which launched 4G to 11 cities in October last year. In contrast, O2's network will go live in just three cities - Leeds, London and Bradford - indicating an urgency to get 4G out before EE steals even more of a march.


O2 will launch to 10 additional cities by the end of the year, with tariffs starting at £26 a month (slightly more expensive than EE's Sim-only £21 a month deal) but it hasn't yet revealed what customers get for this entry 4G package. O2 also hasn't indicated whether 'sharer' plans will be offered, allowing customers to share a 4G data plan in an office or between households and devices.


O2's Achilles' heal in both the business and consumer market will be a lack of iPhone on its 4G network. This will mean losing a huge proportion of the market in iPhone 5 customers, until the launch of the next Apple device later this year.


Yet O2 will fight its corner. Already a well-established player, O2's potential in the business market looks promising - and it's likely the operator will start pushing these credentials heavily. This is confirmed by O2's business director Ben Dowd, who is quoted as actively encouraging business users to sign up to 4G in today's statement.


As Vodafone waits in the wings to announce a 4G network as soon as next week, O2 has a long way to go before catching up with EE's 700,000 4G customers - and not having the current iPhone will hit it hard. But the operator has held the lead in the market once before; it will need to up its game - using deals, add-ons and clear messaging - if it is to do the same in the LTE space.




Read my TechRadar Pro article on choosing a 4G provider for your business.

3 comments
Aug 1 2013 10:20AM by Sami

True, but EE doesn't offer 4G to it's iPhone users either, unless you get an iPhone on their new 4G package.

Aug 1 2013 09:23AM by Kate O'Flaherty

Thanks for commenting! Yes, but at least EE customers have choice of iPhone on 4G. Not so for O2 customers because they don't have the right spectrum.

Aug 1 2013 09:30AM by Sami

Aha, wasn't aware of that! Well researched!

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