Profile: Jeremy Gilley

The man marketing world peace

Consumers say EE is 'too expensive'

Consumers are unimpressed with the pricing announced by EE for its forthcoming 4G network today (23 October), with research seen exclusively by Marketing Week suggesting the majority of people believe its tariffs are too expensive.

EE

EE Facebook photo

Less than a third of consumers (28 per cent) are considering signing up with EE to get a faster mobile internet connection after it launches on 30 October, online polling company Usurv found.

The majority of consumers said they believe EE’s tariffs - which range from £36 for a 500MB a month data allowance, increasing to £56 for an 8GB monthly allowance – are too expensive.

More than half of those polled (53 per cent) said the pricing is “far too expensive” and 34 per cent found the pricing options to be “too expensive”. Just one in 10 agreed the tariffs were fairly priced.

Alongside unlimited calls, texts and a 4G data allowance, EE announced it is also offering customers additional services such as EE Film – which will offer customers a free film download or stream from FilmFlex each month, that will not eat into their data allowance – and Clone Phone, which will replace their handset if lost or stolen in 24 hours with all their previous apps, photos and contacts pre-loaded.

Almost two thirds (61 per cent) of respondents to Usurv’s poll, however, said neither of those options would tempt them to upgrade to EE. Of the two add-ons, Clone Phone was the most popular choice, with 33 per cent of people saying it would make them think about upgrading to 4G.

Usurv polled 500 people in the UK on 23 October using its online self-serve tool that sources survey participants through its partner digital publishers’ registered users.

EE made its pricing announcement to consumers and press this morning (23 October), which has prompted hundreds of comments on Twitter and Facebook today from consumers unimpressed with the pricing structure and its proposed data caps.

The company will be releasing more details about other add-ons, such as a music service and live mobile TV channels, in the coming weeks. It will also roll out a multi-million pound multi-media campaign from the end of the month and is rebadging all its 700 Orange, T-Mobile and Everything Everywhere high street stores as it looks to boost awareness about the new network and its capabilities.

An EE spokesman told Marketing Week the company strived to offer tariffs to suit everyone and noted that the average user on its Orange Panther tariff at £36 a month uses 400MB of data, while people on T-Mobile’s Full Monty plan – also £36 - tend to use about 1GB a month.

He added: “The reality is we announced our prices today but our customers have not used 4G yet. We are confident that once people experience 4G first-hand these attitudes will change – at the moment they are making comparisons to what they already have.”

Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk, says consumers disappointed with EE’s announcement today should not forget that its competitors will be launching their own 4G services in 2013.

He adds: “Everything Everywhere has an excellent track record for service but more providers competing for your custom means cheaper prices and better terms for you, so it could be worth waiting a little longer before signing up to speeds that are 5 times faster than 3G.”

EE Tariffs Explained

Photo posted on EE’s Facebook page 23 October to explain its new tariffs to consumers

Readers' comments (5)

  • What EE have failed to take into account: They are calculating averages based on 3G speeds and usage.

    Broadband users do not use the same amount of data as old 56K dialup users. They use more.

    If you give fast speeds, expect consumption to increase.

    A 1GB data allowance could be used in full within 11 minutes.

    With EE I can watch 20 seconds of an HD movie a month - for the price of three cinema tickets! But on my phone!

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  • People may only use 1GB on "all you can eat" T-Mobile data plans. However it's going to be a *lot* easier to use 2-3GB when browsing and streaming at faster speeds.

    Very good opportunity with the first move advantage which they are not utilising in the slightest. Poor pricing strategy.

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  • It seems like the perfect storm for EE (T-mob as I call them). Unknown to the average user their data use escalates and as result, ridiculously high bills get charged via DD. Great big profits from unaware customers. Perfect strategy!

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  • isnt the EE 4g only suitable for outside and WONT penetrate indoor use ?

    and vodafone's when it arrives will do indoor coverage.

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  • @Toliver - I absolutely agree - they are just taking the 3G model, making it a bit more expensive (why, as it's cheaper to operate than 3G?) and prohibiting the essence of what 4G should be about - unlimited downloads.

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