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Everything Everywhere 4G pricing unveiled

by Alistair Lowe on 23 October 2012, 10:15

Tags: Everything Everywhere

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So how did you expect pricing for the UK's first 4G network might shape-up? Unlimited data? 4G as a replacement to ADSL? Well not quite. Certainly in today's market, Everything Everywhere's packages are competitive, however there's an undeniable premium for what is essentially fast but limited data.

The firm has chosen to offer unlimited minutes and texts on all of its price-plans, instead breaking down monthly fees purely by data allowance.

Handset 500MB £36 1GB £41 3GB £46 5GB £51 8GB £56
HTC One XL 4G LTE Ready £149.99 £49.99 £29.99 £29.99 £29.99
Samsung Galaxy S3 4G LTE Ready £149.99 £49.99 £29.99 £29.99 £29.99
Samsung Galaxy Note 2 4G LTE Ready £179.99 £139.99 £89.99 £39.99 £29.99
Huawei Ascend P1 4G LTE Ready £19.99 FREE FREE FREE FREE
Apple iPhone 5 16GB £179.99 £109.99 £49.99 £29.99 £19.99
Apple iPhone 5 32GB £269.99 £219.99 £149.99 £99.99 £29.99
Apple iPhone 5 64GB £379.99 £269.99 £219.99 £189.99 £139.99

Given that Everything Everywhere offers the same Galaxy S3 LTE model at £49.99 for £36 per month on T-Mobile 3G, which features unlimited calls, texts and internet, there's a huge divide in pricing. Arguably, there's only a £5 per month premium to move to the same handset cost, however 1GB of internet for the network's only unique selling point, 4G's high-speed, feels somewhat lacking.

We would have hoped to see data pricing begin at the maximum currently on offer by other networks, typically 2GB fair-usage, working its way up from there. In an ideal world, of course, we had also hoped for a 'Full Monty' plan, with a slight premium for the extra speed, perhaps £5 to £10 per month.

Let's hope that 4G pricing becomes more competitive as other networks come online early next year, otherwise the UK's 4G roll-out is feeling pretty pointless.



HEXUS Forums :: 41 Comments

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Two things…

1) Everything Everywhere is such a dumb name. I'm sure it's a calculated decision based on years of market blahsearch and stats and blah blah blah, but honestly… it's dumb.

2) How are these data charges not considered price fixing? The running costs for such bandwidth can't be anywhere near that.
Laughable really. Suppose thats what you get when you are the only player in the market though, i would have thought the sensible move would be to wait until the other networks have caught up.
3G aint all that bad anyway really, most of the time im connected to wifi so it barely matters!
Wowzer, that's seriously expensive… No way I'm going to be early adopting 4G then!

On the plus side, the Lumia 920 is listed as being slightly cheaper than the Galaxy SIII - that's good news for me since I really want the 920 but was worried it was going to be insanely overpriced.
Raz316
….

2) How are these data charges not considered price fixing? The running costs for such bandwidth can't be anywhere near that.
Price fixing is nothing to do with the relationship between the cost of materials and the price charged to customers. It's about two or more players in a given market colluding to, in short, abuse market power.

In short, if several suppliers of a service, or buyers of a product (like supermarkets) privately agree on what they'll charge (or pay suppliers), it's price fixing, but if they independently decide to charge high prices for a premium product, it's not.

For instance, I invent the world's most desirable techno-widget, everyone wants one and to get one, they have to buy from me. And I charge £1000 for a device that costs me £10 to make. That might be excessive profit-making, but it isn't price fixing. Your choice, in short, is pay up or do without.

If, on the other hand, three of us are all capable of making and supplying, and we agree privately to charge £1000, that is price-fixing, because it's anti-competitive.

New stuff, be it services or products, or both, are nearly always expensive when they come out, because, first, there's a lack of competition, and secondly, because there's a cadre of early adopters that'll pay silly money, either because they gain more in value (like business opportunities, or because they've more money than common sense and want the pose value.

Anyone remember what the first generations of mobile phones cost when they came out? And what competition did to those prices?

I agree, those prices seem excessive, but some people will pay them, and others will wait. Price-fixing? Don't see it myself? Greedy exploitation of a brief-ish period of market power due to temporary monopoly? Probably.
Biscuit
…. Suppose thats what you get when you are the only player in the market though, i would have thought the sensible move would be to wait until the other networks have caught up.
….
Or …. milk it while you can, ‘cos it won’t last forever.

Very bad PR, though.