Smartphone users twice as likely to churn networks, analysts predicts
Well, with Vodafone and O2 set to launch their UK 4G services tomorrow (September 29th 2013), the UK will finally come to the forefront of the European 4G market say Analysys Mason principal analysts Ronan de Renesse and Chris Nicoll. However, the pair argue that 3UK’s all-you-can-eat mobile data plan and no 4G price premium approach will be difficult to beat. EE –which has enjoyed a near 4G monopoly in the UK for around ten months has already altered its pricing plans in response to 3’s unlimited data plans.
“We expect that the operators will move to shared data plans as well as multi-device plans as the market matures and competition increases,” Analysys Mason says.
The company also claims that the UK’s thirst for high-end mobile devices such as smartphones and tablets will be a major driver for 4G connectivity.
One of the finding in Analysys Mason’s Connected Consumer Survey 20131/ is that one third of UK smartphone users also own a tablet.
“We expect that the operators will move to shared data plans as well as multi-device plans as the market matures and competition increases,” the pair beleives.
Additionally, low 4G price premiums (of £5 a month) from launch combined with attractive content bundles such as Spotify and Sky Sports will drive customer interest in the ramp-up to the crucial Xmas sales period, they say.
Their survey 2013 also found that the share of respondents in our survey who plan to change network provider because of network reliability is twice higher for smartphone than non-smartphone users.
Here at GoMo News, we feel that the UK operators are providing insufficient incentives for their existing subscribers to migrate to 4G rather than churn networks.