Price of 4G LTE: right now you pay 20% premium over 3G, but competition will push it down

Price of 4G LTE: right now you pay 20% premium over 3G, but competition will push it down
The arrival of 4G LTE networks with their high speeds matching and often even surpassing the speeds of your cable internet is a great thing, but as a novelty you are paying the tax for that. Right now, 4G is nearly 20% more expensive than an equivalent 3G plan, according to a report from ABI Research.

Still, the growing competition is expected to push prices down in the near future.

We’ve already seen the first changes in South Korea where SK Telecom had to increase data allowance for its $55 plan from 3GB to 5GB. Similar price and data allowance tunings have been made in Norway, Hong Kong and the United States.

Interestingly, right now 4G LTE is cheapest not in the United States, where it is most widespread, but in Hong Kong, which launched a 4G network in November last year.

Still, it’s clear that the nascent LTE is an opportunity carriers aren’t likely to miss.

"There will be a premium [for LTE]. The model with HSPA+ has made it clear that customers will pay," France Telecom's CEO Stephane Richard said. "We want to accelerate the LTE rollout in France in order to get ahead of the competition."

In a nutshell, prices will come down, and we have the first signs showing right now. The real question is how fast.

source: Fierce Wireless


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