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LTE Launches in UK, Customers Complain of High Prices
EE Defends Pricing By Insisting It's Just Supply and Demand
by Karl Bode 08:18AM Thursday Nov 01 2012
The UK has been well-behind the United States in LTE deployment, only just this month seeing their first carrier deploy the faster technology. EE, a joint venture between Orange and T-Mobile UK, was the first carrier to launch LTE across the ponjd this month. While the UK hasn't mirrored the Unites States' speed at deploying LTE, they have decided to mirror our high prices. Numerous criticisms have been levied toward AT&T and Verizon LTE prices, which are seven times more expensive than in many European countries thanks to limited competition. Verizon Wireless, for example, charges $7.50 per gigabyte of LTE -- three times the European average of $2.50 and ten times the 63 cents per gigabyte charged in Sweden.

Just like in the United States, EE is defending high prices by insisting that it's supply and demand -- not a lack of competition -- that is responsible for the very high prices:
quote:
However, the network’s pricing structures have come in for criticism, with consumer complaining that the minimum £36 per month tariff would only allow for a few minutes of hi-def movie streaming as their phone burns through their data allowance. The operator responded that its prices had been set in line with typical demand. The average usage on a £36 a month plan on its Orange 3G brand was just over 400MB, it said. "EE provides many more options for customers who have a heavier data requirement," a spokesman said. "Our top plan with an 8GB data limit provides customers with eight times more data than is used by an average unlimited user today."
Numerous analysts here in the States, pretty clearly pulling from carrier talking points, also recently insisting it was supply and demand that was responsible for high LTE prices -- entirely ignoring the fact that organic supply and demand doesn't set prices in a duopoly market -- duopoly providers do. A recent study showed that 4G prices are 20% higher than 3G services, as carriers raise 4G prices in order to offset the loss of SMS and voice minute revenues.

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nonamesleft

join:2011-11-07
Manitowoc, WI

Did they drill in the ground to get LTE?

Does LTE suck oil out of the ground or what? That supply and demand excuse to raise prices on everything is the stupidest excuse ever.
DabberDan

join:2004-11-15
Canada

Re: Did they drill in the ground to get LTE?

How many LTE devices out there today? Yeah... demand. Instead, they should claim it's a premium service?

I'd like to add, if customers find it too high, just don't use it (which should lower demand and the price?). Over simplification?

nonamesleft

join:2011-11-07
Manitowoc, WI

Re: Did they drill in the ground to get LTE?

Makes sense to me.
bugabuga

join:2004-06-10
Austin, TX

Heh

I wondered if Verizon gave them the idea of bundling So EE is not as much "Everything Everywhere" but rather "Extremely Expensive".
More puzzling is that their data allowances start so small. 10 minutes of high-speed LTE and you're done.
And UK has plenty of competition. So... I don't think this will fly. And once Three turns on LTE, this little exercise in squeezing extra cash will be over
--
Hyperom: Rants about life, politics, technology

BobbyC101st
Premium
join:2006-02-10
M20 6BN

Re: Heh

That's what I am doing.....as much as I would like a high speed connection through my dongle when using my laptop....there is no way I want to pay extortionate prices for the benefit. I am prepared to wait until competition forces prices down so that LTE phones and dongles have to sell or become obsolete on the shelf.....and I am advising my friends to do the same. The more people shy away from an expensive product, the more the ISPs will regret high prices.

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

And why should the company do anything else?

Like the US, the company has been given the ability to price it whatever they want, whenever they want, however they want. Well, they may have a few more restrictions with the EU but hell, it still is rather insane as shown by this price.

These companies don't even try to give actual reasons for their actions....and why should they? Who is going to stop them from out-right lying with their reasons?
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: And why should the company do anything else?

said by Bill Neilson:

Like the US, the company has been given the ability to price it whatever they want, whenever they want, however they want. Well, they may have a few more restrictions with the EU but hell, it still is rather insane as shown by this price.

If they price it "whatever they want", and no one buys it, they will go out of business. The price represents what people are willing to pay this year.

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

Re: And why should the company do anything else?

said by elray:

said by Bill Neilson:

Like the US, the company has been given the ability to price it whatever they want, whenever they want, however they want. Well, they may have a few more restrictions with the EU but hell, it still is rather insane as shown by this price.

If they price it "whatever they want", and no one buys it, they will go out of business. The price represents what people are willing to pay this year.

Well no, many people like myself require their products as a way to keep our jobs due to demand from employers, employees, and customers.

I would love to cut off my phone/internet for other companies but sadly, I do not have that option. I only have 1 company to choose from.....GOOOOOO COMPETITION!
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: And why should the company do anything else?

said by Bill Neilson:

said by elray:

said by Bill Neilson:

Like the US, the company has been given the ability to price it whatever they want, whenever they want, however they want. Well, they may have a few more restrictions with the EU but hell, it still is rather insane as shown by this price.

If they price it "whatever they want", and no one buys it, they will go out of business. The price represents what people are willing to pay this year.

Well no, many people like myself require their products as a way to keep our jobs due to demand from employers, employees, and customers.

Even if your belief was true, you are still choosing to pay for the phone service - paying only as much as you're willing, "to keep your job". Maybe you should look for other work, or turn the tables on the boss, and have him pay for it.

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

Re: And why should the company do anything else?

said by elray:

Even if your belief was true, you are still choosing to pay for the phone service - paying only as much as you're willing, "to keep your job". Maybe you should look for other work, or turn the tables on the boss, and have him pay for it.

I wasn't really stating whether it was true or not....I know it is true as virtually every person I know needs the ISP at home for their jobs. Maybe some do not....but in my line of work and a variety of others, people need it.

I know that people online can say things like "Quit your job" or "Quit using any internet" as a jab on internet forums but in big-boy world, we do REQUIRE these things as a daily part of our life....and we can't afford to make a "statement" to our ISP's unless we have a 2nd choice.

If it wasn't a requirement and it was a "luxury"....I would have dropped in years ago.