Don't be surprised if EE put their prices up again

29 April 2014

ee EE must be pleased with themselves. They've got somewhere in advance of 2.9m customers signed up to their 4G service and are hoping that, by the end of 2014, that number will have exceeded 6m.

However, EE aren't happy because their revenues are falling. They fell by 3.6%. Of course, that's still a company making £1.55bn, but they don't like the increases in the cost of regulation on their business.

Regulators in Europe and the UK have hit EE with additional costs of £38m, mainly thanks to the change in legislation regarding roaming and wholesale charges on mobile calls.

"The regulatory impact is a big drag on our revenue and in particular some of these new potential regulatory measures like Ofcom’s proposed increase to our spectrum license fee will potentially have an impact on the investments we make on infrastructure in the UK,” chief executive Olaf Swantee told City A.M.

So it looks like EE will be wanting to spend less money in the market, which no-one will really care about at the coalface. However, when regulators hit companies with a cost, you can absolutely expect that to be passed onto the customer. There's no indication of a price rise, but don't be at all surprised if you see something on Bitterwallet telling you that you'll be paying more for your 4G.

The PR has already begun, with Swantee winking at customers like a car dealer: "We are delivering strong, consistent commercial performance and continue to successfully create value through our award winning network."

TOPICS:   Mobile   Economy


  • James P.
    4G? What 4G? They can't even give me a 3G signal but still whack up the price.
  • Truth
    What they *don't* publish is the percentage of those customers they've signed up are internal churn, i.e. that have come from T-Mobile and Orange, two brands being slowly ditched and killed. 6m future customers on the EE Brand, how many will be ex T-Mobile and Orange customers?
  • BRody
    So does that mean that i will be able to leave them if they put the prices up again over the inflation rate which they already have done? I bloody hope so.

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