Reuters: European Telcos count on 4G for pricing power
“People are not willing to pay a significant premium for speed alone, particularly when in the initial period there is limited coverage,” said Thomas Wehmeier, analyst at Informa Telecoms & Media.
“Customers will feel pretty aggrieved if they are paying 60 euros a month but a big proportion of the traffic is going over the old network.”
Wehmeier argues that the better approach is the one taken by Verizon which aggressively rolled out 4G technology to its network starting in 2010 and gave all customers access as part of existing monthly plans. Then it focused its marketing on Verizon’s faster speeds than rivals, emblazoning ads with the slogan “America’s largest 4G LTE network: experience the speed and power in more places.”