Originally Posted by japaul:
“Only free in the same way a phone might be described as "free" with a 2 year contract! And most certainly not a gift from EE. In fact depending on how things turn out, you could argue Three overpaid for their 1800MHz spectrum in swapping an up front fee for annual licence fees to Ofcom. They got better spectrum certainty but it came at a price.”
But 3 did get a 'gift' of the 1800MHz from EE who probably did not want to auction it as it's value to the larger networks would have resulted in significantly greater competition. EE directors are playing at a different level and know what the inside track is with the competition. Did they foresee what might happen in the near future with further mobile consolidation? Companies don't give away spectrum valued at 100s of millions of pounds for no reason, it's business after all!
That said it's interesting watching the very different roll-out strategies of the operators. EE are by far the most proactive in terms of both coverage area and double speed performance. They clearly want to be the network of choice for the demanding customers who are prepared to pay premium prices. O2 seem to be trying to catch EE up and have good coverage in not many fewer areas now. They only have 800MHz so they could have an advantage with better building penetration but will require additional bandwidth to compete head on with EE in the future. Vodafone are a bit behind O2 in terms of coverage but they are trying hard to make their 4G attractive with content from Spotify, Sky and others. O2 and Vodafone look to be heading towards technology neutral offerings as equipment prices fall and the focus moves towards increasing capacity for all data customers. Which leaves 3 bringing up the rear for the first time in many years in terms of rolling out new mobile technology. 3 have 4G coverage in some areas but it's thin on the ground and in some big cities no more than 3 or 4 sites that allow them to tick a box for availability in the area. Perhaps that is slightly unfair as they stated from the outset that their 4G was about delivering additional capacity where it was needed so that may explain the limited provision presently. Of all the networks 3 have the most data use per customer so one would expect 4G to be a priority to maintain their marketing proposition of 'the network built for the Internet'. One has to wonder if parent HWL are treading water and doing only as much as they need to until the outcome is known of the mobile networks consolidation in Germany and France. If either or both reduce from 4 to 3 networks HWL may seek to acquire or merge 3 UK with one of the majors which would make business sense in the long term as a fourth network has little hope of ever gaining similar market share to incumbents, which is why T-Mobile and Orange made their merger move. Investing more than is absolutely necessary for 3 UK may be a foolish move if within the next couple of years they have the possibility to consolidate with a major established provider.
I have no doubt that 4G is now making headway and the landscape has changed in most major markets across the UK as Root Metrics surveys confirm. Those who had slow speeds have improved greatly and in many areas the fastest performing network just 12-18 months ago is now the slowest or second worst! The hare and tortoise syndrome...... nothing in the mobile market remains constant and competition delivers results from new strategies market forces impose on operators. The big winners are customers who are getting more mobile services in more places at cheaper prices than ever before.