Consumers more switched on to 4G but still concerned about impact on their wallets

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Written by Uswitch
Updated on 4 April 2013
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  • No longer in the dark: less than half of consumers (47%) knew what 4G was prior to its launch last October, but now more than 7 in 10 (72%) are clued up

  • The price of speed: 38% say 4G is just too costly right now compared to 31% in October and concerns that data bills will rocket have also grown from 62% to 69%

  • Early adopters: mobile users are more keen to sign up to 4G now than they were six months ago, and they’re also more likely to switch to EE to get it first

  • Future-proofing: almost half of mobile users (48%) are now thinking about getting a 4G-ready handset next time their contracts are up for renewal – compared to less than a third (32%) last October.

Last October EE became the first network to bring 4G to UK mobile customers. Six months on, new research from Uswitch.com, the independent price comparison and switching service, reveals that more consumers are thinking of making the leap to superfast browsing on their smartphone.

Leading the way might have given EE the edge on winning over early adopters, but it faced an uphill struggle when it came to convincing consumers of the benefits, as three in ten (29%) were in the dark about what 4G was. However its awareness campaign is paying off as now less than one in ten (9%) remain baffled.

Launching first was also a double-edged sword when it came to cost, with the network having to set a unique pricing strategy in the absence of a competitive market. Following initial criticism and the introduction of new tariffs with different pricing and data bundles, EE seems to have made progress in winning over consumers. However, Three’s ‘no premium for superfast’ pledge and the upcoming launch of 4G from other networks should see the pricing battle heat up.

Last October, almost a third of consumers (31%) said they wouldn’t sign up to 4G because they thought it would be too expensive for them. Today this number has risen to almost four in ten (38%). However, those happy to pay for the benefits of 4G believe that £5 a month, EE’s 4G premium, is a fair price to pay.

But cost isn’t the only concern – with unlimited data unavailable on EE’s 4G plans, mobile users are becoming more worried about hitting data limits. A faster service will mean that consumers get things done quicker, but it could see them doing more, and racing toward their data limit at an alarming pace. This is a concern to almost seven in ten consumers (69%), compared to six in ten (62%) last October.

Interestingly, despite spectrum auction winners being announced and other providers expected to launch their own 4G services within the next few months, it seems mobile users are still keen to make the switch to EE. In fact, they are more likely to move to the sole current 4G provider (16%) now than they were before the auction results were announced in February (11%).

And despite Brits becoming even more cautious about the speeds that will be delivered – just 16% think it will live up to the hype – many are looking to future-proof when it comes to renewing their handset. Almost half of mobile users (48%) are looking to make sure their next smartphone is 4G-ready.

Ernest Doku, telecoms expert at Uswitch.com, says: “Six months on from the launch of 4G, EE’s honeymoon is almost over. Its head start could disappear once competitors are out of the starting blocks. Fortunately for EE, it has continued to iterate and improve its offering. In fact, even though other networks will soon be entering the race, more customers now seem to be prepared to switch to EE to get superfast mobile internet on the go.

“But as the competition heats up, EE will certainly have to raise its game. It will be interesting to see how other providers attempt to differentiate, demonstate value and quell consumer fears about burning through their data allowances. Or will 4G spell the death of the unlimited data plans? Although the tariffs on offer from EE have undergone a number of nips and tucks in pricing and provision of data, people today are even more worried about the bills they could rack up while surfing on 4G.

“Pricing is highly likely to become the new battleground for 4G, especially in light of Three’s ‘no premium for superfast’ pledge. We hope that more networks offering 4G will lead to real competition on numerous fronts including cost, data, handsets and coverage – so that consumers can enjoy the next generation of mobile internet without the sky-high price tag they fear.”

FOR MORE INFORMATION

Katherine Moss

Phone: 020 3021 5893

Email: katherine.moss@uswitch.com

Twitter: @uswitchPR

Notes to editors

Research referred to in the notes below was conducted online with the Uswitch Consumer Opinion Panel in March 2013 amongst 1,415 smartphone users. Previous research was carried out online with OnePoll in September 2012 with 2,000 mobile phone users.

  1. When asked ‘Do you know what 4G is?’ 9.4% said ‘no’, 71.8 said ‘yes’; In October 28.6% said ‘no, 47.0% said ‘yes’

  2. Of those who said they wouldn’t be willing to switch to EE to get 4G now, 38.2% said ‘I think it will be too expensive for me’; In October 31% said this.

  3. When asked ‘How concerned are you about how 4G might affect your data bills?’ – 69.2% answered ‘very concerned or quite concerned’; In October 62% said this.

  4. When asked “Do you want 4G?” 56.8% said yes; In October this was 49.2%

  5. The survey asked ‘Would you be willing to switch to EE to get 4G as soon as possible?’ 16.3% said ‘yes’, In October this was 14%

  6. When asked ‘Would you consider getting a 4G handset?” 47.9% said they would get a 4G handset in some way. In October, 31.5% said ‘yes’

  7. The survey asked ‘How much extra would you be willing to pay per month for 4G?’ the average amount was £4.99; In October it was £3.35

  8. When asked ‘Do you believe that 4G speeds will live up to the hype when it’s finally rolled out?’ 15.8% said ‘yes’; In October, 32% said ‘yes’.

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